Tesla shares fall 3.5% as company reports first decline in annual deliveries

01/02/2025 10:29 AM

Reduced European subsidies, a US shift to lower-priced hybrids and Chinese competition have squeezed EV maker

Tesla reported its first decline in annual deliveries on Thursday, as the automaker handed over fewer-than-expected electric vehicles in the fourth quarter and incentives failed to boost demand for its ageing lineup of models.

Shares of the company fell 3.5% before the bell, in a sign of investor worries over the challenges facing CEO Elon Musk, who expected promotions including zero-interest financing to power a "slight growth" in deliveries in 2024.