Tesla Stock Price Down 4% after First Annual Drop in Deliveries

Tesla shares fell during trading on Thursday, January 2, after it reported its first decline in annual deliveries.

Shares of the EV company fell as much as 7% earlier in the trading session on Thursday before paring their losses to a level near 4%.

Q4 report comes after a huge late-year rally in Tesla shares, which ended 2024 up 63%. In mid-December, the company’s shares hit a record high, surpassing their all-time high set in 2021.

That was a major turnaround from the stock’s performance during the first quarter of last year, when the stock fell 29%, its worst period since 2022, as the company faced a sales slump despite price cuts and incentives for buyers.

Tesla released its fourth-quarter vehicle production and deliveries report on Thursday. Total deliveries in Q4 of 2024 reached 495,570 vehicles, while total production in the same quarter reached 459,445 vehicles.

For 2024, total annual deliveries reached 1,789,226 vehicles, and total annual production during the year reached 1,773,443 vehicles.

The quarterly results represent the first annual decline in Tesla’s delivery numbers, compared to 1.81 million deliveries in 2023. This comes despite the quarterly increase compared to 484,507 deliveries in the Q4 of 2023.