The Tesla Cybertruck explosion outside the Trump International Hotel in Las Vegas on New Year’s Day was followed on Thursday by Tesla’s release of its fourth-quarter delivery numbers and a drop in its stock price.
Newsweek reached out to Tesla via email for comment Thursday morning.
Authorities are investigating whether the Las Vegas incident, in which one user died and seven others were injured, was a terrorist attack. This news comes at a difficult start to the year for Tesla, as the Cybertruck, presented with great fanfare at the end. 2023, had difficulty meeting investors’ high expectations.
The company’s disappointing delivery numbers were reflected in inventory performance, with Tesla inventory falling 5% in the open market on Thursday.
Tesla’s disappointing sales in 2024, marking its first annual decline in a decade, have raised investor concerns. A combination of missed targets, a slowing market and rising competition drove Tesla’s stock down 6.08 percent at Thursday’s market close.
In the fourth quarter, Tesla delivered 495,570 vehicles, below its target of 515,000 units. The Cybertruck, introduced in late 2023, added fewer than 50,000 units to the year’s total, well below expectations. year up to 1. 79 million vehicles, 1. 1% less than the 1. 81 million delivered in 2023.
The broader EV market also presents challenges. Rising interest rates and economic uncertainty are pushing consumers toward less expensive hybrids, while classic carmakers are ramping up production of electric vehicles, expanding the festival in key markets such as the United States and China. Tesla remains the market leader, but it is under pressure to upgrade its outdated product lineup.
Tesla’s inventory functionality reflects those challenges. After a 29% drop in the first quarter (the worst in two years), the stock rebounded at the end of the year, ending 2024 up 63% and hitting an all-time high in mid-December. However, the recent drop has renewed considerations about the company’s ability to grow.
Adding to the uncertainty, CEO Elon Musk’s involvement in politics has drawn attention. Musk has spent $277 million for President-elect Donald Trump and other Republican candidates, actively campaigning in key states. He has also been named co-head of the government’s new Ministry of Efficiency, raising questions about how much attention he will be able to pay Tesla.
Despite those headwinds, Tesla shares have gained about two-thirds of their price since Election Day, boosted by optimism surrounding Musk’s political influence. Investors are now closely watching Tesla’s next steps, adding plans to create more affordable models, to see if the company can regain momentum in a competitive market.
Musk responded to the incident in Las Vegas, calling the perpetrators evil and asserting that the vehicle’s design limited the damage.
“The evil knuckleheads picked the wrong vehicle for a terrorist attack. Cybertruck actually contained the explosion and directed the blast upwards. Not even the glass doors of the lobby were broken,” Musk posted on X (formerly Twitter), which he owns.
In a separate statement, he insisted that Tesla’s telemetry data showed no defects in the vehicle and said the explosion was not related to the functionality of the Cybertruck.
Daniel Ives, a currency analyst at Wedbush Securities, said in a report: “We’ve never seen Tesla just as an automaker. . . Instead, we have seen Musk and Tesla as a leading global player in the disruptive technologies sector. “
Sam Fiorani, vice president of industry think tank AutoForecast Solutions, told CNBC: “Musk’s foray into politics likely would have distracted him from his core business. “
Tesla’s functionality is heavily monitored and is an indicator of the global electric vehicle industry. An ambitious sales expansion goal of 20-30% has been set until 2025, but achieving this goal will largely depend on the good fortune of the Cybertruck and the arrival of more models.
Despite the close alliance between Musk and Trump, Tesla faces some uncertainty under the new administration. While plans to reduce regulations and introduce federal rules for self-driving cars may simply satisfy Tesla’s robot-taxis ambitions, the potential elimination of federal subsidies for electric cars poses a significant challenge.
The company is scheduled to release its full fourth-quarter financial results after the market closes on January 29.
Jesus is a reporter for Newsweek Live News based in New York. Originally from Bogotá, Colombia, he focuses on news and trends. He has covered global politics, migration, pop culture and sports. Jesús joined Newsweek’s US bureau in 2024. He previously worked for the Financial Times and was a foreign journalist and editor of the El Espectador newsletter in Colombia. He graduated with a master’s degree in virtual journalism and innovation from New York University. Languages: English, Spanish. You can join Jesús by sending an email to j. mosquera@newsweek. com