STORY: Shares of Tesla fell more than seven percent Thursday morning after it reported its first decline in annual deliveries.
It handed over 1.79 million electric vehicles in 2024, down one percent from 2023 and below the 1% gain predicted by analysts.
Incentives failed to boost demand for its aging line-up of models.
CEO Elon Musk expected promotions including zero-interest financing to power a "slight growth" in deliveries in 2024.
Reduced European subsidies, a shift in the U.S. toward lower-priced hybrid vehicles and tougher competition from China's BYD have pressured Tesla.
In response, Musk pivoted Tesla to self-driving taxis and backed President-elect Donald Trump with millions of dollars in campaign donations in hopes that it could bring regulatory relief for the company.
Deliveries in the fourth quarter also dropped.
With self-driving technology still years away, analysts have said Tesla will have rely on cheaper versions of current cars and the Cybertruck to drive sales growth in the near term.
The truck, known for its trapezoidal, stainless-steel exterior, has been showing signs of demand weakness, analysts have said.
Tesla's shares surged 62% last year.