Tesla Faces Declining Sales and Intensifying Competition

The EV leader's first-ever annual sales drop raises concerns as competition from Chinese automakers and traditional car giants grows.

Tesla reported a 1.1% decline in vehicle deliveries for 2024, marking its first annual sales drop since the launch of the Model S in 2011.
Chinese EV manufacturers, including BYD, are rapidly closing the gap, with BYD delivering nearly as many EVs as Tesla in 2024 and poised to overtake it in 2025.
Traditional automakers, such as General Motors and Volkswagen, are improving their EV offerings, creating additional pressure on Tesla's market share.
Speculation surrounds Tesla's potential launch of a more affordable EV in 2025, though plans for a $25,000 model were previously canceled by Elon Musk.
Musk's focus on political involvement and other ventures has raised concerns about his ability to address Tesla's challenges, with some suggesting he may need to step back from leadership.