Tesla sales have declined, marking the first time the electric vehicle (EV) giant has seen a decline in annual deliveries.
Despite efforts to attract buyers with incentives such as interest-free financing, the company's fourth-quarter deliveries fell short of expectations, sending its stock price down 3.5%.
Tesla delivered 495,570 vehicles in the final three months of the year, falling short of analysts' estimates of 503,269, including 471,930 units of the popular Model 3 and Model Y, along with 23,640 deliveries of other models such as the Model S, Cybertruck and Model X.
The company produced 459,445 vehicles in the same period.
2024 deliveries are set to reach 1.79 million, lower than the previous year's figure.
Among the factors driving the decline are fierce competition from China's BYD, reduced government subsidies in Europe and a shift among consumers towards lower-priced hybrid vehicles.
The Cybertruck, once in high demand, is now showing signs of weaker demand.
Tesla's dominance in Europe is also waning as Volkswagen's Skoda Enyaq overtook the Model Y as the top EV in the region.
Investors believe these sales figures will recover in 2025, factoring in interest rate cuts.
