Karl Brauer, a renowned analyst, has expressed skepticism over Tesla’s ability to achieve its target of 20% to 30% sales growth in 2025, even with the introduction of a lower-priced model. According to Brauer, the ramp-up time required to produce an all-new model is a significant hurdle, and Tesla’s plans may be overly ambitious.
The Challenges Ahead
Tesla is in need of an affordable model to boost sales, but its latest addition, the Cybertruck, is too expensive to create a significant surge in sales. The Chinese market, on the other hand, has demonstrated an exceptional ability to manufacture low-cost EVs while maintaining financial success. Even if Tesla releases a lower-cost EV, it is unlikely to match the profit levels of its Chinese rivals, such as BYD.
A Decline in Deliveries
2024 marked the first year that Tesla’s annual deliveries fell, with a decline of 1.1% compared to the previous year. In 2023, the company delivered 1,808,581 vehicles worldwide. To achieve growth in 2024, Tesla needed to deliver at least 514,926 vehicles in the final quarter, but it failed to reach the 500,000 target, delivering only 495,570 BEVs.
Future Plans
During its third-quarter earnings report, Tesla announced plans to launch new vehicles, including more affordable models, starting in the first half of 2025. The introduction of a lower-cost offering is expected to revitalize the company’s aging car lineup and drive sales growth. However, with the analyst’s doubts over the company’s ability to meet its growth targets, the future of Tesla’s sales remains uncertain.
Key Points
- Tesla’s growth target of 20% to 30% in 2025 is deemed unrealistic by analyst Karl Brauer
- The company needs an affordable model to boost sales, but its latest addition, the Cybertruck, is too expensive
- The Chinese market has demonstrated an exceptional ability to manufacture low-cost EVs while maintaining financial success
- Tesla’s deliveries fell in 2024, with a decline of 1.1% compared to the previous year
- The company plans to launch new vehicles, including more affordable models, starting in the first half of 2025