Tesla's Tumultuous Year: Navigating Demand Declines and Future-Tech Ambitions

Tesla reported a bigger-than-expected drop in deliveries, indicating a second consecutive annual sales decline. The phaseout of tax incentives and increasing competition have impacted demand. Despite weaker sales, investor interest grows due to Tesla's futuristic projects in self-driving technology and robotics.

Tesla has experienced a larger-than-anticipated decrease in fourth-quarter deliveries, resulting in consecutive declines in annual sales. This comes as the company grapples with dwindling demand following the end of tax subsidies.

In the final quarter, Tesla delivered 418,227 vehicles, which is a drop from last year's 495,570 and below analyst expectations of 434,487. The annual deliveries totaled 1.64 million, slightly shy of the predicted 1.65 million.

The reduction in Tesla's deliveries is attributed to the lapse of U.S. EV tax credits, intensifying global competition, and a brand backlash from Musk's political statements. Nevertheless, Tesla shares have surged due to market expectations for its advancements in autonomous tech and robotics.

(With inputs from agencies.)