Tesla is facing stiff competition in the market it once ruled.
The electric vehicle maker posted its first annual drop in sales since the pandemic Tuesday, showing a significant decrease in delivered vehicles.
According to Tesla’s report, it delivered 387,000 of the 433,000 vehicles it manufactured in the first three months of 2024.
This marks a stiff decline from 2023 when the company delivered 422,875 vehicles in the first quarter and 484,507 in the fourth quarter.
The numbers come as the EV industry continues to grow exponentially.
Automakers in both the U.S. and China have risen to challenge Tesla for the top spot in the industry. Last year, Chinese automaker BYD dethroned Tesla as the top-selling EV automaker.
U.S. automakers like Ford and GM have also been pumping out their own EV alternatives to their typical gas-powered cars.
Tesla responded to the uptick in competition by slashing prices. The company cut the prices of its Model Y vehicles by thousands of dollars in 2023 to cut back on inventory and bump up sales numbers. While sales did increase, profit margins have predictably been smaller.
Tesla, however, did not attribute 2024’s slowing sales to increased competition. The company said production and supply chain issues resulted in a bumpy start to 2024.
The company’s slow sales number reflects the predictions of many experts who say that, while demand for EVs is still strong, it has weakened since 2023.
Many automakers ramped up production in 2023 as sales remained strong, with sales of EVs reaching one million for the first year ever. But those same automakers, namely Ford and GM, have cut production significantly to reflect slowing demand.
Some reports also suggest that Tesla CEO Elon Musk’s public antics have significantly hurt the company’s reputation.
According to an analysis from market research firm Calibur, first reported by Reuters, Mr. Musk’s recent political statements have associated Tesla less with technologically advanced EVs and more with controversy.
• Vaughn Cockayne can be reached at vcockayne@washingtontimes.com.
Please read our comment policy before commenting.