Tesla is struggling in the US as its aging lineup faces new competition

Last year, electric-vehicle sales in the US grew to 1.3 million, up 7.3% from 2023, according to a new report by Cox Automotive. But sales of Teslas, the top-selling EV maker in the country, declined by nearly 40,000 (or 5.6%) in 2024, as its aging lineup faces new competition.

That puts Elon Musk’s electric-car company more in line with struggling European automakers like Volkswagen and Mercedes-Benz. But as Sherwood previously noted, lower vehicle sales would typically cause a company’s stock to drop. That hasn’t been the case with Tesla, whose stock has been riding high on Donald Trump’s victory in the presidential election. Analysts have even made the bull case that Tesla’s stock could double as it transitions from electric vehicles to a yet to be executed autonomous ride-sharing business.

While Tesla’s global delivery numbers declined about 1% overall in 2024 — its first annual drop in more than a decade — growth in other markets like China helped offset the larger US decline. Tesla doesn’t break out regional deliveries, but Cox’s numbers track with other analyst estimates.

Despite the drop, Tesla still represented 44% of EV sales in the US in Q4, Cox data shows. It was followed by Ford at 8%.