Cybertruck Not Enough to Juice Tesla’s 2024 Sales

Tesla’s Cybertruck, launched with significant fanfare in late 2023, has not quite provided the expected sales boost that investors had hoped for, leaving the company just short of the 515,000 units needed for the quarter to surpass 2023’s full-year total. For the first time in a decade, Tesla’s annual sales declined in 2024 after years of rapid growth. Tesla shares dropped 5 percent at the market open on Thursday. Newsweek reached out Tesla for comment via email on Thursday morning. Why It Matters Tesla’s flat delivery numbers reflect a maturing electric vehicle market where growth is no longer guaranteed. Higher interest rates and economic uncertainty have made consumers more cautious, steering some toward cheaper hybrid options. Meanwhile, traditional automakers ramping up EV production have intensified competition in key markets such as the U.S., Europe, and China. As a bellwether for the global EV industry, Tesla’s results are closely watched. CEO Elon Musk has set a sales growth target of 20-30 percent for 2025, but much of this will depend on delivering cheaper car models and the success of the Cybertruck. What To Know Rising competition and an aging lineup are pressuring Tesla, still the EV market leader. While the Cybertruck, launched in late 2023, has performed well in the EV truck segment and has become its own potent brand for Tesla, the vehicle has thus far fallen short of driving the broader growth the company expected. A Cybertruck exploded outside of a Trump property in Las Vegas on New Year’s Day, and officials said they were investigating whether it was a terror attack. Tesla saw its first annual decline in vehicle deliveries in the year that just ended, delivering approximately 1.79 million vehicles, a 1.1 percent decrease from the 1.81 million delivered in 2023. In the fourth quarter of 2024, Tesla delivered 495,570 vehicles, slightly below analysts’ expectations. The company’s stock is coming off a massive late-year rally, ending 2024 up 63 percent after hitting a record high in mid-December, surpassing its 2021 peak. The Cybertruck, Tesla’s first entry into the pickup market, was initially expected to boost sales significantly. However, it contributed fewer than 50,000 units to 2024 deliveries, far below expectations. Tesla co-founder and CEO Elon Musk gestures while introducing the newly unveiled all-electric battery-powered Tesla Cybertruck at Tesla Design Center in Hawthorne, California on November 21, 2019. For the first time in a decade, Tesla’s… Tesla co-founder and CEO Elon Musk gestures while introducing the newly unveiled all-electric battery-powered Tesla Cybertruck at Tesla Design Center in Hawthorne, California on November 21, 2019. For the first time in a decade, Tesla’s annual sales have declined after years of rapid growth, causing a direct impact on the market. Tesla shares dropped 5% at the market open on Thursday. FREDERIC J. BROWN/AFP via Getty Images Earlier in the year, Tesla saw its share price drop 29 percent in Q1, its worst period in two years. In April, Musk warned of slower growth in 2024 compared to 2023. Adding to the headlines, Musk became a prominent figure in President-elect Donald Trump’s campaign, spending at least $277 million to back Trump and other Republican candidates while campaigning in swing states. Although Tesla shares lost 10 percent over the last three sessions, they have gained about two-thirds of their value since Election Day, boosted by the presidential election outcome and Musk’s personal closeness with the president-elect. It remains unclear how much time Musk will be able to devote to Tesla in the new year after being appointed by Trump to co-lead the new Department of Government Efficiency (DOGE). What People Are Saying Sam Fiorani, vice president at industry research group Auto Forecast Solutions, told CNBC: “Musk’s foray into politics may have pulled his focus away from his core businesses.” David Tracy, editor in chief of the car culture website The Autopian, to the New York Times: “The Cybertruck is very hard to separate from Elon Musk, because it’s not really logical.” What Happens Next Tesla faces uncertainty under the new administration. While plans to cut regulations and introduce federal guidelines for autonomous vehicles could boost Tesla’s robotaxi ambitions, President-elect Trump is also expected to eliminate federal EV subsidies. Tesla is set to release its full Q4 financial results after the market closes on January 29.