Tesla’s global sales saw an increase of 2.3 percent in the last quarter, despite the slow start to the year, which contributed to recording the first annual decline in the company’s sales since at least 2015.
Decline despite offers
This annual decline came despite the attractive promotional offers offered by “Tesla”, such as zero percent financing, Free Shipping, and discounted rentals, according to The Associated Press.
“Tesla” delivered 495,570 vehicles in the period from October to December, bringing the total annual deliveries to 1.79 million vehicles.
However, this figure represented a decrease of 1.1 percent, compared to 2023 sales of 1.81 million, against the backdrop of slowing public demand for electric vehicles in the United States and elsewhere.
Profit challenges
This increase was achieved in the last quarter at a great cost, as the analysts surveyed by “fact six” expected that the average selling price of Tesla cars would fall to just over 41 thousand dollars in the last quarter, the lowest level in at least 4 years, and this indicates significant challenges facing Tesla’s profits in the last quarter, which the company is expected to disclose details on January 29 next.
In 2022, Tesla had expected its sales to grow by 50 percent per year in most years, but this forecast was hit by challenges, such as outdated models and increased competition from companies in China, Europe and the United States,” the company said.
In the US market, analysts point out that most of the early adopters of the technology have already acquired electric cars, while new buyers face concerns about range, price and the ability to find charging stations during long trips.
Estimates of ” Wall Street “
Deliveries in the last quarter were also below the estimates of “Wall Street”, as “fact six” expected sales to reach 498 thousand vehicles. In reaction to these results, Tesla shares fell by 5.2 percent during early trading on Thursday, but the stock has seen a significant rise over the past 12 months, rising by more than 50 percent, supported by Donald Trump’s election victory.
Early sales declines led to unprecedented discounts by Tesla, which affected the company’s record profit margins, and increased competition from traditional startups in the automotive industry, seeking to capture Tesla’s share in the market.
Most of Tesla’s sales came from its smaller and less expensive models “Model 3″ and”Model Y”, with only 23,640 cars sold from its more expensive models, “Iki” and”S”, in addition to the new “cybertrack” car.
Bypass the ” BYD “
Despite the challenges, Tesla’s global electric car sales surpassed its Chinese rival “BYD”, which announced on Thursday an increase in sales by 41 percent last year to 1.77 million electric vehicles, putting the two companies in competition for the title of the largest electric car manufacturer in the world.
The production of “Tesla” in the last quarter amounted to 459,445 vehicles, which is less than the total deliveries for the quarter, while the annual production of 1.77 million vehicles was less than the annual sales.
