Tesla’s annual deliveries are down for the first time since 2011

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Tesla’s annual vehicle shipments fell for the first time in more than a decade as the world’s largest automaker came under pressure from Chinese competition.

Shares fell more than 6 percent on Thursday as the numbers raised questions about the sharp decline in sales that CEO Elon Musk had predicted.

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

In the quarter, the company said on Thursday that it delivered 495,570 vehicles, up 2.3% from the same quarter a year earlier, but falling short of market expectations for more than 500,000 .

Despite year-on-year declines, Tesla is maintaining its position as the world’s largest EV maker as it faces stiff competition from Chinese rival BYD, which previously reported on Thursday that sold 1.76mn pure EVs in 2024. BYD said it sold a record 4.3mn EVs and hybrids, a company record, despite intense pressure from rivals in its market.

Investors 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 reported higher-than-expected quarterly earnings and forecasts”little growth” in the run-up to 2024, with Musk predicting that sales of the group’s vehicles could increase between 20 and 30% by 2025.

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

Tesla is also caught up in the political activity of its chief executive. Musk spent more than $250mn to support the successful election campaign of Donald Trump and was one of the closest advisers of the president-elect. Trump has tasked Musk with leading a new Department of Government Operations aimed at finding ways to reduce US federal spending.

Shares of Tesla continued to rally ahead of the November election as investors saw the benefits of Musk’s close relationship with Trump. But the company also faces political uncertainty with California’s Democratic governor, Gavin Newsom, hinting that Tesla could miss out on more tax breaks the state is considering for EVs.

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

While increasing his political power, Musk has also made strategic plans for autonomous driving, artificial intelligence and robotics, predicting that these technologies will soon become Tesla’s biggest sources of revenue. and raise its value.

The company intends to start producing its self-driving Cybercab before the start of 2027. This model would cost about $ 25,000, when government incentives for electric vehicles are removed.

In October, Musk confirmed that Tesla was not producing the much-anticipated $25,000 Model 2. The company told investors in December that it would launch a new model in the first half that was it will be priced at less than $30,000 including subsidies or $37,499 without them.