Detroit – Tesla’s global sales saw a modest increase of 2.3% in the fourth quarter, marking a noteworthy shift after a sluggish start to the year that led to the company’s first annual drop in sales since at least 2015.
Despite attractive offers like zero-percent financing, complimentary charging, and affordable leasing options, Tesla’s overall sales dropped. The company, headquartered in Austin, Texas, delivered 495,570 vehicles between October and December, bringing total deliveries for the year to 1.79 million. This figure fell short by 1.1% compared to the previous year’s sales of 1.81 million, as interest in electric vehicles (EVs) began to slow down across the U.S. and beyond.
The boost in fourth-quarter sales, however, came at a price. Analysts from FactSet predicted that Tesla’s average selling price would dip to just over $41,000 during this period, the lowest point in at least four years. This price drop poses challenges for Tesla’s profit margins, with results from the fourth quarter expected to be released on January 29.
In 2022, Tesla had estimated a 50% growth in sales for most years. However, this vision faced reality, with aging models and mounting competition in markets like China, Europe, and the U.S. Analysts suggest that many early adopters of electric vehicles have already made their purchases, leaving more traditional buyers hesitant due to concerns about range, cost, and the availability of charging stations on long trips.
Fourth-quarter deliveries did not meet Wall Street’s expectations, which were set at 498,000 vehicles, according to FactSet. Following this news, Tesla’s shares dropped 3% at Thursday’s opening, although the stock has seen a remarkable increase of over 50% in the past year, partly influenced by the recent electoral success of Donald Trump.
The declining sales earlier in the year led to unprecedented discounts from the carmaker, impacting its leading profit margins. Additionally, competition from both established automakers and start-ups continues to heighten as they strive to capture more of Tesla’s market share.
