Tesla shares fell 6.6 per cent yesterday after Elon Musk’s electric car maker reported its first drop in annual sales in more than a decade amid tough competition.
The Texas company has surged in value since the US presidential election in which Musk (pictured) backed winning candidate Donald Trump.
That helped Musk’s personal wealth soar beyond $400billion (£323billion).
But Wall Street was disappointed by electric vehicle (EV) sales in the fourth quarter.
Incentives such as discounts failed to boost demand for its ageing line-up of models amid tough competition from rivals including China’s BYD.
Tesla delivered 495,570 vehicles in the three months to December 31, missing estimates of 503,269 units.
Tesla has surged in value since the US presidential election in which Musk (pictured) backed winning candidate Donald Trump
Deliveries for 2024 were 1.79m – 1.1 per cent lower than a year ago. BYD yesterday reported a 41 per cent jump in EV sales to 1.77m.
It was the first time Tesla reported a year-on-year drop in deliveries since 2011. Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: ‘The shine has come off Tesla.’
But analysts at Wedbush said Trump’s presidency will accelerate Tesla’s growth.
They said: ‘We have always viewed Musk and Tesla as a leading disruptive technology global player and the first part of this grand strategic vision has taken shape over the past five years.
‘The next step in this broader strategic vision is the autonomous and AI era which will be accelerated under a Trump White House.’
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
Saxo
Saxo
Get £200 back in trading fees
Trading 212
Trading 212
Free dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
Compare the best investing account for you
