Tesla’s stock took a significant hit on Thursday, falling over 5.5% in morning trading, after the company reported its first annual decline in deliveries. The automaker’s fourth-quarter performance fell short of expectations, revealing a slowdown in the growth of its electric vehicle (EV) sales despite efforts to stimulate demand through price cuts and incentives.
For the three months ending December 31, Tesla delivered 495,570 vehicles, missing analysts’ expectations of 503,269 units. This marked a notable decline in growth for the company, which had previously posted strong delivery numbers. Tesla’s deliveries for the quarter included 471,930 units of its more affordable Model 3 and Model Y vehicles, alongside 23,640 vehicles from its other models, including the Model S, Cybertruck, and Model X.
In total, Tesla produced 459,445 vehicles in the fourth quarter. However, its full-year deliveries for 2024 were 1.79 million units, a 1.1% drop from the previous year, falling short of the 1.806 million units forecasted by analysts. Despite ongoing efforts to boost sales with incentives and price cuts, Tesla’s aging vehicle lineup and competition from other EV manufacturers appear to be taking a toll on demand.
The company’s struggle to maintain its rapid growth amid an increasingly crowded EV market has raised concerns among investors, contributing to the sharp decline in its stock price.
