Tesla reports first year-on-year sales drop since at least 2015 after 1.1% dip

Tesla’s global sales rose 2.3% in the fourth quarter after a sluggish start to the year that contributed to the electric car company’s first year-on-year sales decline since at least 2015.

The annual decline for the Austin, Texas, company came despite offers such as 0% financing, free charging and low-priced leases.

Tesla delivered 495,570 vehicles from October to December, boosting deliveries to 1.79 million for the full year. But that was 1.1% below 2023 sales of 1.81 million as overall demand for electric vehicles in the US and elsewhere slowed.

The fourth-quarter boost came with a cost. Analysts polled by FactSet expected Tesla’s average sales price to fall to just over 41,000 dollars in the quarter, the lowest in at least four years.

That does not bode well for Tesla’s fourth-quarter earnings, which the company said it would announce on January 29.

In the US, analysts say most early adopters of technology already have electric vehicles, and more mainstream buyers have concerns about range, price and the ability to find charging stations on longer trips.

The fourth-quarter deliveries fell short of Wall Street estimates. Analysts polled by data provider FactSet expected sales of 498,000 vehicles.

Tesla shares fell 3% at the opening bell on Thursday, but shares are up more than 50% over the last 12 months, surging with the election victory of Donald Trump.

Falling sales early in the year led to once unheard of discounts for the car manufacturer, cutting into its industry leading profit margins.

Competition from legacy and start-up car manufacturers is also growing as they try to nibble away at the company’s market share.

Nearly all of Tesla’s sales came from the smaller and less-expensive Models 3 and Y, with the company selling only 23,640 of its more expensive models that include X and S, as well as the new Cybertruck.