Tesla is a household name, and probably the brand that first comes to mind when discussing electric vehicles. It has blazed a trail that other automakers have been forced to follow. That also means that there are now more options than ever when shopping for an electric car. That growing competition appears to be affecting Tesla, which has published its fourth-quarter production and delivery results. According to those numbers, Tesla delivered fewer vehicles than the year before, which was the first for the brand, and the company’s stock price took a hit as a result.
Tesla’s Production And Deliveries
In the fourth quarter of 2024, Tesla produced 459,445 vehicles, and delivered 495,570. Of those, the vast majority were Model 3 or Model Y, and the company built just 22,727 and delivered 23,640 of its more expensive models.
For the entirety of 2024, Tesla produced 1,773,443 vehicles and delivered 1,789,226. That’s down from 1,845,985 built and 1,808,581 delivered in 2023. That’s about a four-percent decrease in production year over year, and about one-percent fewer deliveries. That’s not a huge decrease in the grand scheme of things, but it fell short of expectations, enough so that Tesla’s stock price has fallen about seven percent as of this writing.
A Shift In Priorities
Despite the mild disappointment, Tesla’s stock price remains high — probably higher than it should be if it were based solely on the company’s sales performance. Tesla’s value has climbed drastically since the U.S. presidential election, as Elon Musk finds himself in Trump’s inner circle, and at the head of his Department of Government Efficiency (along with former presidential hopeful Vivek Ramaswamy). Investors seem to be more focused on the prospects of the man in charge of Tesla than the company itself.
Investors also remain hopeful of Tesla’s endeavors in autonomous vehicles and artificial intelligence. Tesla recently unveiled its Cybercab, a self-driving car at the core of the company’s robotaxi strategy. While Trump is no particular friend to electric vehicles — his plans to end EV subsidies could harm Tesla — the incoming administration could lead to a softer regulatory environment that could help grease the skids for the deployment of self-driving cars. Tesla will also soon sell an updated version of the Model Y, which could boost sales, and the rumored affordable Model Q could be incoming as well.
Perhaps it doesn’t really matter all that much that the company delivered fewer vehicles in 2024, as 2025 could prove to be a big year for Tesla, and Elon Musk.
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