Tesla|Tesla’s sales volumes declined last year and the stock was on a steep decline. The company’s share price is still loaded with huge expectations for the growth of business results.
The summary is made by artificial intelligence and checked by a human.
Tesla’s sales volumes fell short of expectations at the end of 2024.
Tesla delivered around 496,000 cars in the last quarter of the year.
Tesla shares fell four percent before the stock markets opened.
Electric car manufacturer Tesla’s sales volumes fell short of expectations at the end of last year. The disappointment of October–December pushed Tesla’s total sales last year lower than the previous year.
Tesla delivered around 496,000 cars in the last quarter of the year. The majority of these were Model 3/Y models. During the entire year 2024, the company delivered approximately 1,790,000 cars. In 2023, the company delivered more than 1.8 million cars.
This was the first time on a yearly basis that the sales volume of Teslas turned down. According to the Reuters news agency’s assessment, the reason for the weak sales is, among other things, reduced subsidies for the purchase of electric cars in Europe. In the US, on the other hand, cheaper hybrids are now preferred instead of fully electric cars.
Tesla has tried to speed up sales by lowering prices and other enticements. In the fully electric car market, cheaper Chinese competitors, such as Byd, have harassed the industry pioneer.
Principal owner and CEO of Tesla Elon Musk has also taken a prominent role in the next president of the United States Donald Trump’s as a political ally. He has also, for example, notably supported the far-right AfD party in Germany.
Political activity may have had an impact on car sales.
Tesla’s the stock was down about six percent in the United States on Thursday evening Finnish time.
However, the company’s stock has risen sharply throughout last autumn. In mid-December, the share price was at its highest value so far, i.e. almost 480 dollars. Tesla’s market value is more than 1,200 billion dollars.
The p/e number that tells about the share’s valuation is about 107, which means that the share price exceeds the company’s earnings per share more than a hundred times. Such a high p/e ratio usually indicates exceptionally strong growth expectations.
The decline in sales numbers is not compatible with these expectations.