Tesla’s stock (TSLA) has faced a disappointing start to 2025, following a remarkable performance in 2024. Today, the company released its fourth-quarter and full-year electric vehicle (EV) delivery figures, which revealed a significant development: for the first time, Tesla experienced a year-over-year decline in the number of EVs shipped to customers. Consequently, shares plummeted as much as 7.5% in early trading, settling down by around 5.8% by late morning.
In the fourth quarter, Tesla achieved a record delivery of 495,570 EVs. However, this fell short of the expected figure of approximately 505,000. Overall, the company reported full-year deliveries of about 1.79 million vehicles, a slight dip from the previous year’s total of 1.81 million.
Despite the downturn in EV sales, there are important developments to consider beyond just this segment. Tesla’s energy division has shown impressive growth, with energy deployments rising 125% in 2023 and a further 114% increase to 31.4 gigawatt hours (GWh) in 2024. This upswing highlights the growing demand for energy storage, driven by advancements in renewable energy sources.
Investors are also keenly awaiting the launch of a truly autonomous vehicle, which could revolutionize the industry and introduce a lucrative new revenue stream through robotaxis. Furthermore, Tesla’s robotics division may also offer promising future earnings potential.
For the time being, Tesla’s revenue largely hinges on EV sales, and the recent decline may have prompted investors to reassess their stakes after a robust year in 2024. Long-term investors should remain attentive to the ongoing evolution of Tesla’s technology and evaluate whether the company’s potential justifies continued investment.
In summary, while the recent figures may be concerning, Tesla’s commitment to innovation in both EVs and renewable energy could pave the way for a recovery. Optimistic investors might view this as an opportunity to hold onto shares, considering the company’s broader potential for growth in the technology and energy sectors.