Tesla’s annual deliveries drop for first time since 2011

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Tesla’s annual vehicle deliveries fell for the first time in more than a decade as the world’s largest electric vehicle maker comes under pressure from Chinese competition.

Shares fell more than 6 percent on Thursday as the figures raised questions about a sharp rebound in sales that Chief Executive Elon Musk had predicted.

throughout the year, Tesla delivered 1.79 million vehicles, below the 1.81 million delivered in 2023 and the first annual drop since 2011, according to Bloomberg data.

On a quarterly basis, the company said Thursday it delivered 495,570 vehicles, up 2.3 percent from the same quarter a year ago but short of market expectations of more than 500,000.

Despite the annual decline, Tesla still holds its position as the world’s largest EV maker while facing stiff competition from Chinese rival BYD, which first reported on Thursday that it 1.76 million pure EVs sold In 2024. BYD said it sold a record 4.3 million EVs and hybrids, a company record, despite intense pressure from rivals in its home market.

Investors had expected a strong fourth quarter for Tesla on the back of cost cuts and discounts on existing vehicles to boost consumer demand.

In October, Tesla expected quarterly profit and forecast “little increaseon delivery for 2024, while Musk predicted the group’s car sales could grow between 20 percent and 30 percent in 2025.

Competition with cheaper offerings from Chinese rivals and concerns about slowing growth in EV sales, however, have weighed on the market over the past year.

Tesla has also been caught up in the political activism of its CEO. musk spent more than $250 million To support Donald Trump’s successful election campaign and became one of the president-elect’s closest advisers. Trump tasked Musk with co-leading a new department of government expertise aimed at finding ways to reduce US federal spending.

Tesla shares have risen since the November election as investors see the benefits of Musk’s close relationship with Trump. But the company faces political uncertainty with California’s Democratic governor, Gavin Newsom, indicating that Tesla could miss out on lucrative tax breaks that the state is considering for EVs.

With its complex supply chain and close business ties to China, Tesla is also unlikely to avoid the impact of the sweeping tariffs that Trump has threatened against US imports.

While increasing his political influence, Musk has also made a strategic pivot toward autonomous driving, artificial intelligence and robotics, predicting that these technologies will soon be Tesla’s main source of revenue and boost its valuation.

The company aims to start manufacturing its self-driving CyberCab before early 2027. Excluding government electric vehicle incentives, the model will cost around $25,000.

In October, Musk confirmed that Tesla was not developing the much-anticipated affordable $25,000 Model 2. The company told investors in December that it will launch a new model in the first half that will cost under $30,000 with subsidies or $37,499 without.