Tesla's total deliveries fell below 1.8 million vehicles last year for the first time

Tesla's annual deliveries fell for the first time last year as the US electric car giant delivered fewer electric vehicles than expected in the fourth quarter and incentives failed to boost demand for older models.

According to Reuters and Agence France-Presse, Tesla (TSLA) on Thursday (January 2) released its annual report, delivered 495,570 vehicles in the fourth quarter of last year, and delivered a total of just under 1.8 million vehicles for the year, about 1.1% lower than 2023 sales.

Tesla needs to sell nearly 515,000 vehicles in the first quarter of this year to achieve its full-year goal of "modest" growth.

Reduced subsidies in Europe, a shift to lower-priced hybrid cars in the United States and fierce competition from China's BYD have put pressure on Tesla.

However, Musk, the company's head, told investors on the latest earnings call that he expects growth of 20 to 30 percent this year, in part due to the expected launch of a more affordable model and self-driving technology in the first half of the year.

U.S. President-elect Donald Trump is also expected to ease federal rules on self-driving cars, potentially favoring Tesla's push for self-driving taxis.