Tesla shares fell as much as 8% on Thursday after the company reported its fourth-quarter vehicle deliveries.
The company’s shares were at $373. 40 before paring losses.
The company delivered 495,000 vehicles in the quarter, below analysts’ estimates of around 505,000.
For the full year, Tesla delivered 1. 79 million cars, marking the company’s first annual sales decline. Tesla delivered 1. 81 million cars in 2023.
A wave of festivals in the electric vehicle sector has put pressure on Tesla in recent years, with BYD thriving in China and Rivian, General Motors and Ford locating their products in the US market.
The majority of Tesla’s deliveries in 2024 were of its popular Model 3 vehicle, which accounted for 95% of its total deliveries. The remaining 5% of vehicle deliveries correspond to the Model X, Model S and CyberTruck.
The delivery figures are the first real piece of fundamental news for Tesla investors since the November election. Donald Trump’s victory helped spark a strong year-end rally for the stock as traders see Elon Musk and his companies benefiting from ties to the President-elect Musk forged during the campaign.
Despite Tesla’s decline on Thursday, inventory is up 51% since Trump’s election victory. Dan Ives, an analyst at Wedbush Securities, said the Trump administration is eventually expected to push the path toward autonomous driving, helping boost Tesla’s valuation. He added that the delivery figures were “respectable” and that in 2025 they will grow again.
“We remain very confident in Tesla’s ability to drive delivery expansion in FY25, with 20-30% delivery expansion being the street target as TSLA is also expected to launch its electric vehicle economic in early 2025 to drive expansion of vehicle deliveries,” Ives said.