Mask and Challenges Ahead; Tesla's Annual Sales Decline After a Decade

In 2024, Tesla faced its first annual sales decline since 2011, selling 1.79 million vehicles, down from over 1.81 million in 2023. Experts cite 'early year sales decline' and intense market competition as factors contributing to this drop for the electric vehicle manufacturer. However, in the last quarter of the previous year, Tesla managed to boost sales by offering discounts, special financing conditions, and price reductions, selling 495,570 vehicles during that period, but this increase was insufficient to offset the annual downturn. Analysts believe that fierce competition from established automakers in Europe and the United States, as well as emerging companies in China, has put significant pressure on Tesla. The Chinese company BYD, which has become Tesla's main competitor, challenged Tesla's position with a 41% increase in sales in 2024. Some experts also believe that Elon Musk's support for Donald Trump has disheartened a portion of Tesla's customer base. Analysts assert that for Tesla to continue growing, it needs to introduce newer and cheaper models in the $30,000 price range to attract more middle-class customers. Although Tesla's annual sales have declined, experts still view the company as a pioneer in self-driving technology and artificial intelligence, believing its future depends on its ability to adapt to new market needs.