Tesla Inc reported its first fall in yearly deliveries yesterday as lucrative year-end incentives for the Elon Musk-led electric vehicle (EV) maker's aging lineup and the new Cybertruck pickup failed to lure customers wary of high borrowing costs.
Musk had earlier predicted "slight growth" in last year's deliveries and offered a range of promotions including interest-free financing and free fast-charging to boost sales.
But reduced European subsidies, a shift in the US toward lower-priced hybrid vehicles and tougher competition especially from China's BYD Co (比亞迪) hurt Tesla.
Photo: Reuters
The US EV maker's shares closed about 6 percent lower.
"Lower deliveries reduces Tesla's growth and lowers the total addressable market for the company's ancillary services, including autonomous driving software, charging, and insurance," Morningstar Inc analyst Seth Goldstein said in a note.
"The slight decline highlights that the current vehicle lineup is nearing market saturation," he added.
As demand for EVs slows, Musk has pivoted his focus on building a self-driving taxi business that is expected to boost Tesla's value.
He also backed US president-elect Donald Trump with millions of dollars in campaign donations and analysts expect easier regulations from the new administration to help Tesla in the long run.
But with self-driving technology still under development and years away from commercialization, analysts have said Tesla would have to rely on its promised cheaper versions of current cars and the success of Cybertruck to achieve Musk's target of 20 percent to 30 percent sales growth this year.
The truck, known for its futuristic design, has been showing signs of weakness in demand. Tesla is yet to disclose the delivery numbers for its Cybertruck.
Tesla is also under pressure from legacy automakers. Its October registrations in Europe fell 24 percent, due to a tight race from Volkswagen Group, whose Skoda Enyaq SUV dethroned Tesla's Model Y as the best-selling EV in the region, according to data research firm JATO Dynamics.
The company said yesterday that it handed over 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.
Overall, Tesla delivered 495,570 vehicles in the three months to Dec. 31, missing estimates of 503,269 units, according to 15 analysts polled by LSEG Group. It produced 459,445 vehicles in the period, down about 7 percent from a year earlier.
Deliveries totaled 1.79 million last year, 1.1 percenbt lower than the prior year and below estimates of 1.806 million units, according to 19 analysts polled by LSEG.
Tesla's deliveries last year were ahead of BYD, which reported a 12.1 percent rise in sales of battery-electric vehicles to 1.76 million, thanks to competitive prices and a stronger push into Asian and European markets.
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