- cross-posted to:
- economy
- cross-posted to:
- economy
Summary
Tesla reported its first annual decline in deliveries, with 1.79 million vehicles delivered in 2024 compared to 1.81 million in 2023.
Fourth-quarter deliveries (495,570) fell short of analyst estimates, causing Tesla shares to drop 7%.
Challenges included rising competition in Europe and China, declining sales despite price cuts, and growing inventory of Cybertrucks.
Analysts cited CEO Elon Musk’s political involvement as a potential distraction.
While Tesla plans to release lower-cost autonomous vehicles in 2025, its lack of affordable EVs and intensified competition have strained its market dominance.
It’s more that Tesla is a bubble. The thing with bubbles is that it’s actually completely rational to buy into them while they’re inflating. As long as you get out before they pop, you can make a ton of money.
Rational might be stretching it a bit. There’s a reason this is called the Greater Fool Theory.
https://en.m.wikipedia.org/wiki/Greater_fool_theory
It’s rational on an individual level because you can know it’s a bubble, know the company is overvalued and yet still conclude that the best move is to buy. It’s risky, but the question is if the risk/reward ratio is better or worse than the alternatives. In the case of TSLA, you’d have made well over 10x your money if you had bought in 2019. It’s why bubbles keep happening despite everyone knowing they exist and will pop eventually.
All of that, plus an additional bit of irrationally, since SpaceX is private, some investors are in Tesla with the idea that some future corporate action will cause Tesla shares to eventually include SpaceX ownership as well.