Massive Tesla Sales Drop – Investors in Panic Mode!

For years, Tesla dominated the U.S. electric vehicle (EV) market, especially in California, where Teslas became a common sight on the roads. However, 2024 has painted a different picture—Tesla is seeing a sharp decline in sales, both in the U.S. and internationally.

What’s causing Tesla’s drop in sales? Is it increased competition, aging technology, or CEO Elon Musk’s political controversies? Let’s break down the key factors behind Tesla’s recent struggles.

Tesla’s Declining Sales in California and Beyond

California, the largest EV market in the U.S., saw Tesla sales drop 12% in 2024 and 8% in the last quarter alone. The biggest hit came from the Model 3, which saw a staggering 36% decline in registrations.

While overall EV sales in California increased slightly (1.4%), all of Tesla’s competitors saw growth—only Tesla experienced a decline.

Nationwide Trends:

• Tesla saw its first-ever annual sales decline in 2024.
• The company’s market share dropped below 50%, down from over 75% in 2022.
• U.S. consumers bought 1.3 million EVs in 2024, but Tesla’s dominance is clearly slipping.

Tesla’s Struggles in Key Global Markets

Tesla’s sales slump isn’t just a U.S. problem—it’s happening worldwide.

China:

• Tesla sales fell 11.5% in January 2024, according to the China Passenger Car Association.
• China accounts for over a third of Tesla’s global sales, making this a major concern.

Europe:

• Germany: Sales fell 59% in January alone.
• France: Sales dropped 63% year-over-year.
• United Kingdom: Sales declined 12%.
• Norway: Sales plummeted 38% in January.

With major losses in all three of Europe’s largest markets, Tesla’s position in the EV industry is weakening fast.

Why Are Tesla Sales Declining?

Several factors may be contributing to Tesla’s struggles, ranging from aging technology to CEO Elon Musk’s controversial actions.

1. Outdated Technology and Lack of New Models

One of Tesla’s biggest issues is its aging lineup. While competitors like Hyundai, Kia, and Porsche have adopted 800-volt EV architecture for faster charging and better performance, four of Tesla’s five models still use an older 400-volt system designed in 2012.

Only the Cybertruck has a modern 800-volt system.
 Tesla has made minor updates to the Model 3 and Model Y, but they lack major technological improvements.
 The company hasn’t announced any groundbreaking new models for high-volume production.

Competitors are offering more advanced EVs at competitive prices, making Tesla’s models seem less appealing.

2. Elon Musk’s Controversies and Political Backlash

Beyond the cars themselves, some experts believe that Musk’s political involvement has turned off potential buyers.

InsideEVs states that the backlash against Musk’s increased involvement in politics has become a key issue.
Electrek reports that Tesla stores are facing vandalism and protests, including an arson attempt in Colorado and anti-Tesla messages in Berlin and The Hague.
 Public perception of Tesla appears to be shifting, with some former fans choosing to buy from other EV brands.

3. High-Profile Investors Selling Tesla Stock

Tesla’s sales decline has made some of its top executives and board members nervous.

Tesla CFO Vaibhav Taneja, Board Chair Robyn Denholm, and Board Member Kimbal Musk (Elon’s brother) have all sold millions of dollars’ worth of Tesla stock in 2024.
 Tesla stock has fallen from $424 per share in January to just over $360 at the time of writing.

Investor confidence in Tesla appears to be weakening, which could spell further trouble for the company.

Tesla’s first-ever annual sales drop is a wake-up call for the EV giant. Increased competition, outdated technology, and Elon Musk’s controversial public image all seem to be playing a role in the company’s struggles.

With new EV brands gaining ground, Tesla must innovate quickly or risk losing more market share. The promised lower-cost Tesla models in 2025 could be a turning point, but for now, Tesla is facing one of its toughest years yet.

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