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

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. Reduced European subsidies, a shift in the US toward lower-priced hybrid vehicles and tougher competition from China's leading electric vehicle maker BYD have put pressure on Tesla. In response, Musk pivoted Tesla to self-driving taxis and backed President-elect Donald Trump with millions of dollars in campaign donations in hopes that it could bring regulatory relief for the company. Tesla handed over 495,570 vehicles in the three months to 31 December, missing estimates of 503,269 units, according to 15 analysts polled by LSEG.