Tesla stock falters as deliveries decline amid rising rivals
After announcing the delivery results for the fourth quarter of 2024, Tesla's stock price fell by more than 5 percent. This marks the first annual decline in the company's history. The stock performance may also have been influenced by an incident involving one of its vehicles.
The American electric car manufacturer Tesla released its latest results, delivering 495,570 vehicles in the last quarter of 2024. The company's stock reacted with a sharp decline; during Thursday's session on NASDAQ, the share price fell by more than $20 to $383 per share.
Growing competition in the electric car market
Tesla is increasingly feeling the pressure from other manufacturers. The competition is especially fierce with the Korean automaker Hyundai and the Chinese company BYD, both of which have significantly increased their presence in the global electric vehicle market in recent months.
The beginning of the year was difficult for the company, as confirmed by Elon Musk himself, who warned investors about slower growth. The situation improved in subsequent quarters, but not enough to avoid the first annual decline in deliveries.
Future prospects
Chart analysis shows that on an annual scale, Tesla's stock gained over 54 percent. However, the last month brought a correction—the price fell from around $480 to the current $383.
Despite a yearly increase of over 7 percent, the last session showed a noticeable deterioration in sentiment. Investors are concerned about the growing competition in the electric vehicle sector and its impact on the company's future performance.
Drop in Tesla stock after quarterly report
The latest data from NASDAQ shows a significant drop in the electric car manufacturer’s stock. The company's shares lost more than 5 percent of their value after publishing the delivery report.
As reported by CNBC on January 2, 2025, Tesla shared its fourth-quarter production and delivery data, revealing that it delivered 495,570 vehicles during the final three months of 2024.
Changing market environment
CNN analysts point out that "Tesla has faced increased competition not just from Chinese rivals like BYD but also from legacy global automakers such as General Motors, Ford, Volkswagen AG and Korean partners Hyundai and Kia."
The report notes that the year's first quarter posed challenges, with CEO Elon Musk cautioning investors about slower growth ahead, despite improvements in performance as the year progressed.
In the longer term, Tesla gained
According to data from the investment platform, Tesla's stock increased by 54.27 percent over the year. However, a noticeable correction has been seen in the recent period—the price fell from about $480 to $383 per share.
Detailed analysis of the daily chart shows that despite a 7.45 percent increase over the month, the last session brought a drop of more than $20. Investors are reacting to the first-ever annual decrease in the company's deliveries.
The decline in stock prices may also be related to another incident. On Wednesday, one person was killed due to an explosion of a Tesla Cybertruck near the Trump Hotel in Las Vegas. Seven people were injured. Tesla CEO Elon Musk stated that the explosion was caused by fireworks or a bomb transported in the trunk of a rented Cybertruck.
