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Tesla’s 2024 Growth May Depend on Cybertruck’s Success Amid Softening Demand

Automobile

Business Honor
23 December, 2024

Tesla’s 2024 vehicle deliveries could see slight growth, but much depends on the success of the Cybertruck, which faces challenges.

Tesla's 2024 vehicle deliveries are expected to see only slight growth over the previous year, with analysts forecasting a record 1.81 million units. However, much of this growth hinges on the success of the newly launched Tesla Cybertruck. Although the truck has attracted significant attention due to its unique design and potential, signs of waning demand have emerged.

In 2023, Tesla reached its record delivery of 1.81 million vehicles but is facing several challenges. With increasing competition and an ageing product lineup, demand for the electric vehicle market leader is being affected. Consumers are instead opting for hybrids that are much cheaper than electric vehicles when borrowing costs are high. Elon Musk, the chief executive of Tesla, has ambitious plans - a robotaxi business, in the long run - but this technology remains years away from being materialized.

Analysts have also said that the Cybertruck's high price and awkward design are reasons why people might not be interested in the truck. The Cybertruck is stainless steel and trapezoidal in shape, thus polarizing public opinion, mainly from the full-size truck enthusiasts, who tend to prefer the more conventional designs.

To respond to softer demand, Tesla has cut prices on leases and even provided financing deals for its other models, such as Model 3 and Model Y. Still, Tesla's U.S. registrations through October dropped 7%, with sharp declines in Model 3 and Model S sales.The Cybertruck’s future success is crucial for Tesla’s growth strategy in 2024. While some analysts believe the truck will eventually find its place in the market, others point to the increasing inventory and extended sales times for used Cybertrucks as potential signs of trouble. Tesla is also offering Cybertruck leases, a move that many see as an effort to boost demand amid softer-than-expected sales.