Challenges Ahead for Tesla
Tesla is facing significant challenges, marked by its first decline in deliveries in nearly a decade. Despite efforts to meet expectations, the company has fallen short of its goals, largely due to the rise of Chinese competitors.
2024 Results: A Year of Decline
Tesla delivered 1.79 million vehicles in 2024, representing a 1.1% drop from the previous year. Although the decline may seem minor, it breaks a long-standing growth record. The fourth quarter saw an increase in deliveries, but still fell short of estimates.
Causes Behind the Decline
The decline in Tesla’s deliveries can be attributed to various factors, including:
Chinese Competition: BYD Takes the Lead
BYD, a Chinese company, has reported a 41% increase in sales, reaching 4.27 million electric and hybrid vehicles. This surge in sales has put pressure on Tesla, with BYD surpassing the company in the electric vehicle segment in several quarters.
Technology and Models Not Meeting Expectations
Older Tesla models, such as the Model 3 and Model Y, are facing difficulties due to cheaper alternatives. The Cybertruck, despite its futuristic design, has shown little demand, with Tesla not publishing figures.
Impact of the Political Framework
Musk’s financial and strategic support for the Trump campaign has raised expectations of more favorable regulations for Tesla. However, these policies have yet to materialize and may not be enough to revitalize the company’s profits.
Global Market and Outlook
The Trump administration’s consideration of eliminating the $7,500 credit for electric car purchases could slow the transition to electric vehicles in the US. Tesla registrations in Europe have also decreased, highlighting the strong competition in the market.
Tesla faces a challenging 2025, with increased competition and technological changes that will impact its position in the market. The success of its new models, such as the Cybertruck, and advancements in autonomous driving will be crucial in maintaining its relevance.