Why Tesla's sales have dropped like never before?

Tesla's sales have declined for the first time in its history, leading many to wonder if billionaire Musk's current political role is the reason.

Tesla, the electric car company owned by billionaire Musk, recorded its first-ever sales decline - Photo: AFP

Tesla, the electric car company owned by tech billionaire Elon Musk, is experiencing an unprecedented drop in sales, while competitors like China's BYD are rapidly gaining market share.

This has led many to question whether Musk's new political role and controversial statements are the reasons why consumers are no longer as enthusiastic about this electric car company.

Sales declined for the first time.

According to CNN on February 18th, Tesla recorded its first global sales decline in 2024, down 1% compared to 2023. While this might seem insignificant to other businesses, compared to Tesla's record growth of 38% and 40% in the two previous years, it's considered an alarming sign.

Furthermore, since Tesla's stock price over the past decade has been largely based on growth expectations, any signs that the brand is stagnating are cause for concern.

In the US, Tesla's sales plummeted 16% from December 2023 to January 2024. While early-year sales declines are a familiar trend due to the company's strategy of boosting sales at the end of the year, this drop is still noteworthy. Tesla's slowdown reflects increasing competitive pressure from other electric vehicle manufacturers.

Tesla not only faces a busy CEO with numerous companies, both large and small, now venturing into American politics, but also encounters challenges from increasingly fierce competition and high car prices.

Established automakers like General Motors, Ford, and Volkswagen have launched a range of new electric vehicle models at more competitive prices than Tesla.

Meanwhile, Tesla has only made minor changes to its flagship models such as the Model Y, Model 3, Model X, and Model S. Its only new model, the Cybertruck, is a high-priced, niche product, yet sales of this line remain modest.

Furthermore, Tesla is also facing significant pressure from the Chinese automaker BYD. In the fourth quarter of 2024, BYD surpassed Tesla in global electric vehicle sales and is gaining market share from Tesla in China and Europe. Although it has not yet entered the US market, BYD's expansion poses a major challenge to Tesla.

The Tesla Cybertruck caters to a specific customer base due to its high price - Photo: AFP

Does politics impact Tesla's sales?

One of the most controversial issues recently has been the role of billionaire Elon Musk in the US government . His appearances alongside President Trump at White House events have led many to question whether Musk's political views influence customers' car purchasing decisions.

Data from S&P Global Mobility shows a decline in Tesla customer loyalty in Democratic-leaning states.

The percentage of customers buying Tesla vehicles in these states decreased from 72% to 65% in 2024, while this figure slightly increased from 47.6% to 48.2% in Republican-leaning states. This could cause Tesla to gradually lose market share in key markets like California.

Additionally, a Morning Consult survey in February 2024 showed that 32% of US car buyers stated they were "not considering" buying a Tesla, up from 27% the previous year and 17% in 2021.

Nevertheless, the percentage of people willing to buy a Tesla has remained stable at 16% over the past four years, indicating that not all customers are influenced by political factors.

Additionally, the number of used Tesla vehicles for sale is also increasing sharply. Data from AutoTrader shows that an average of approximately 11,300 used Tesla vehicles were listed for sale in Q4 2024, a 28% increase compared to the previous year.

While this could be a consequence of the surge in Tesla purchases in the post-pandemic period, it also raises questions about customer loyalty to the brand.

Despite much debate about the influence of billionaire Musk on Tesla's sales, experts believe the deciding factors remain price, features, and competition from rivals. With increasing competition, Tesla will face more challenges if it doesn't have a new strategy to maintain its leading position in the electric vehicle industry.

Read more Back to the Home page

Source: https://tuoitre.vn/vi-sao-doanh-so-tesla-sut-giam-chua-tung-co-20250219152531052.htm