Tesla, the electric vehicle (EV) giant led by CEO Elon Musk, announced on Tuesday that it had sold 1.8 million EVs in the past year, surpassing its sales volume goal for 2023. The company's latest financial results indicated that Tesla built 494,989 vehicles in the last quarter of 2023, out of which 18,212 were the older Models S and X, and 476,777 were the more popular Models 3 and Y. Of the total vehicles built, Tesla managed to deliver 484,507 EVs, with 461,538 being Models 3 and Y.

Cumulatively, Tesla produced 1,845,985 EVs, consisting of 1,775,159 Models 3 and Y, and 70,826 Models S and X. Furthermore, the company successfully delivered 1,808,581 EVs, including 1,739,707 Models 3 and Y, and 68,874 Models S and X, effectively meeting its 2023 sales goal.

Although Tesla achieved another record-breaking year in terms of sales, it fell short of its targeted cumulative annual growth rate (CAGR) of 50 percent. In 2023, the company experienced a growth rate of 40 percent, followed by a modest growth of 38 percent in 2024. To reach the desired CAGR, Tesla will need to significantly improve its performance in 2024.

This year, Tesla faced increasing competition as it was surpassed in EV sales by Chinese automaker BYD during Q4 of 2023. Additionally, Tesla's market share has slightly declined, particularly in the United States, due to the introduction of numerous new EV models by competitors. Considering China and the US as Tesla's vital markets, investors have taken note of these challenges, resulting in a nearly 5 percent decline in the company's share price since the beginning of trading today.

As Tesla looks ahead, the focus will be on rebounding and achieving substantial growth in 2024 to meet its ambitious targets. The competition landscape and market dynamics will likely play a crucial role in determining the company's future success.