Electric vehicle (EV) maker Tesla has reported a catastrophic slump in New Zealand automotive sales revenue, which plummeted 69 per cent to $107.2 million in 2024 from $342 million in 2023.
Total NZ revenue collapsed to $149.5 million from $373.6 million, with net profit nosediving 84 per cent to just $457,120 from $2.78 million the previous year.
Energy generation and storage revenue offered a bright spot, growing to $19.1 million from $16.8 million, while services revenue remained relatively stable at $13 million compared to $13.7 million.
Regulatory credits were up from $1.1 million in 2023, to $10.1 million, while total company assets grew to $140.2 million from $103.9 million, and inventory rose to $35.3 million from $25.5 million.
Business might not improve this year either. Tesla has been caught in the fallout from its chief executive Elon Musk's political activities for the Trump administration, in particular the controversial Department of Government Efficiency (DOGE), and support for far right political parties.
The company's chief financial officer told Reuters that Tesla had felt the impact of vandalism and what he called "unwarranted hostility" towards the brand and company employees, in certain markets.
For the first quarter of its financial year, Tesla worldwide saw a 20 per cent revenue drop, and a whopping 71 per cent fall in profits. In Europe, Tesla sales have recently seen similar double-digit drops in key markets, despite EV sales rising substantially in the region.
Locally, Tesla has also had to contend with the elimination of the Clean Car Discount (CCD) and the introduction of Road User Charges for electric vehicles, which created significant headwinds for all EV manufacturers throughout 2024.
Chinese brands such as BYD are also overtaking Tesla; for April this year, Geely-owned Polestar sold the most EVs in NZ, with its model 2 reaching 94 units in total. BYD sold 86 EVs in total, split among three models. Tesla's Model Y was third placed in the market, with 34 vehicles sold.
New Zealand's EV market remains sluggish however, New Zealand Transport Agency data suggests. Worldwide, research from Rho Motion suggests 1.7 million EVs were sold in March this year, up 29 per cent on the year before.
Removal of EV incentives for buyers in the US add to the uncertainty for Tesla in that market; President Trump's tariff trade war could hit Tesla hard in the Chinese market, as vehicles could almost double in price due to new, steep import duties.
Tesla New Zealand is structured as an unlimited company - ULC - which the Companies Office defines as:
The shareholders of an unlimited company have ultimate liability meaning they must pay any debts the company can’t pay. This liability is included in the company’s constitution.
Unlimited companies are used to meet very particular, often foreign, legal requirements.
Tesla Australia-New Zealand has been asked for comment on the results, and the story will be updated if and when it arrives.
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