Tesla sales fell in 2024, missing Elon Musk's EV growth target

Driving the news: The company delivered about 1.79 million vehicles in 2024, down 1.1% from 2023.

• In the fourth quarter, Tesla delivered 495,570 vehicles, up 2.3% from the same period a year earlier.
• But the fourth quarter performance fell short of Wall Street's consensus estimate of 504,800, according to Wedbush Securities.

The big picture: The Model 3 sedan and Model Y crossover collectively made up about 95% of the company's global vehicle sales in 2024.

• The Tesla Cybertruck is coming on strong but remains a niche vehicle for now — and the company hasn't introduced a new mass-market model in several years.

The impact: Tesla stock was down over 5% in midday trading Thursday.

Zoom in: The year-long performance fell short of CEO Elon Musk's projected "slight growth" in 2024.

• "In our view, the miss reflects a relatively aged product and increased availability of lower priced competition globally," Morgan Stanley analyst Adam Jonas wrote Thursday in a research note.

Threat level: Chinese EV maker BYD is surging globally, having sold about the same number of pure EVs as Tesla in 2024.

Yes, but: Tesla investors are betting that in the long run, the company will deliver groundbreaking innovation on self-driving cars and AI.

• "We have never viewed Tesla simply as a car company...instead we have always viewed Musk and Tesla as a leading disruptive technology global player," Wedbush Securities analyst Dan Ives wrote in a research note.

What we're watching: With Musk's newfound perch as a close adviser to President-elect Donald Trump, Tesla may benefit from federal policies to come on AI and driverless vehicles.

• "The next step in this broader Tesla strategic vision begins is the autonomous and AI era which will be accelerated under a Trump White House," Ives wrote.