Tesla shares fall 6.6% after sales decline for the first time in a decade amid tough competition

Tesla shares fell 6.6 percent yesterday after Elon Musk’s electric car maker reported its first drop in annual sales in more than a decade amid stiff competition.

The Texas company has risen in value since the US presidential election in which Musk (pictured) endorsed winning candidate Donald Trump.

That helped Musk’s personal wealth soar beyond $400 billion.

But Wall Street was disappointed by electric vehicle (EV) sales in the fourth quarter.

Incentives such as discounts have failed to boost demand for its older model line amid stiff competition from rivals such as China’s BYD.

Tesla delivered 495,570 vehicles in the three months to December 31, missing estimates of 503,269 units.

Deliveries for 2024 were 1.79 million, down 1.1 percent from a year ago. BYD yesterday reported a 41 percent increase in electric vehicle sales to 1.77 million.

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: “Tesla has lost its shine.”

But Wedbush analysts said a Trump presidency will accelerate Tesla’s growth.

They said: “We have always seen Musk and Tesla as a leading global player in disruptive technology 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 accelerate under the Trump White House.”