Tesla annual deliveries fall for 1st time, hurt by BYD, Volkswagen

Shares tumble as EV maker struggles with aging lineup, rising competition

20250102N Tesla Model Y

Tesla Model Y electric cars in Germany. Volkswagen's Skoda Enyaq SUV has dethroned the Model Y as the best-selling EV in Europe. © Reuters

(Reuters) -- 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 aging lineup of models.

Shares of the company fell nearly 6%, indicating 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.

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