Tesla stock dropped as much as 8% on Thursday after the company reported fourth-quarter vehicle deliveries.
The company’s shares were at $373. 40 before paring losses.
The company delivered 495,000 vehicles in the quarter, missing analyst estimates of about 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 finding their place in the US market.
The bulk of Tesla’s deliveries in 2024 were for its popular Model 3 vehicle, which accounted for 95% of its total deliveries. The remaining 5% of vehicle deliveries come from the Model X, Model S and CyberTruck.
The delivery numbers are the first genuine bottom line news for Tesla investors since the November election. Donald Trump’s victory helped spark a strong year-end rally for stocks, and investors saw Elon Musk and his companies take advantage of the ties to President-elect Musk that forged the campaign.
Despite Tesla’s decline on Thursday, the stock 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 transition to autonomous driving, which will help 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 the Street’s target being 20-30% delivery expansion as TSLA is also expected to launch its affordable electric vehicle. in early 2025 to drive the expansion of vehicle deliveries. ”Ives said.