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Tesla's First Sales Drop Since Amidst Rising Competition and Political Controversy
By Bhanwar Lal
For the first time in over a decade, Tesla has seen a drop in its sales. According to a report by the Associated Press, Tesla's sales fell by 1.1% in 2024, marking its first decline since 2011. The electric vehicle manufacturer, led by CEO Elon Musk, sold a total of 1.79 million vehicles in 2024, down from 1.81 million in 2023.
Despite offering attractive incentives like 0% financing, free charging, and low-priced leases, the company's sales only grew by 2.3% in the final quarter of the year, with 495,570 vehicles sold between October and December. Most of the sales came from the more affordable Models 3 and Y, with only 23,640 of Tesla's higher-end models, including the Model X, S, and the newly launched Cybertruck.
Tesla's struggles come amid increasing competition in key markets like China, Europe, and the U.S. As Tesla's model lineup ages, competitors like China's BYD have made significant gains. BYD saw a remarkable 41% increase in sales, reaching 1.77 million EVs in 2024.
Political Impact on Tesla's Sales
Another factor contributing to the sales decline could be the political controversy surrounding Elon Musk’s public support of Donald Trump. According to the AP report, some environmentally conscious buyers may be alienated by Musk’s stance, as many of them typically lean towards Democratic candidates. This political backdrop could be influencing consumer sentiment, especially as Tesla has long been associated with sustainability and environmental progress.
Tesla’s Response and the Road Ahead
Despite the sales drop, Tesla remains optimistic. The company is focusing on expanding its production capabilities and introducing new models to stay competitive in the evolving EV market. However, with the rise of new players and the increasingly complex political landscape, it remains to be seen how Tesla will adjust its strategies to maintain its dominant position.
