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. The company failed to meet quarterly delivery targets multiple times in 2024.

Deliveries for 2024 were 1.79m, 1.1% lower than a year ago, below estimates of 1.806m units, according to 19 analysts polled by LSEG. Tesla moved 495,570 vehicles in the three months to 31 December, missing estimates of 503,269 units, according to 15 analysts polled by LSEG. Tesla delivered 471,930 Model 3 and Model Y vehicles and 23,640 units of other models, including the Model S sedan, Cybertruck and Model X premium SUV. It produced 459,445 vehicles during the October-December period.