Tesla shares plummeted 6.6% yesterday following the announcement of the company’s first annual sales decline in over a decade, highlighting intensified competition in the electric vehicle (EV) market.

The Texas-based automaker has experienced substantial growth in valuation since Elon Musk, its CEO, supported Donald Trump in the U.S. presidential election.

This surge contributed to Musk’s personal fortune surpassing $400 billion.

However, Wall Street was unimpressed by Tesla’s fourth-quarter EV sales performance.

Despite offering incentives such as discounts, Tesla struggled to boost demand for its aging model lineup in the face of fierce competition from rivals like China’s BYD.

In the final quarter of the year, Tesla delivered 495,570 vehicles, falling short of the forecasted 503,269 units.

Total deliveries for 2024 stood at 1.79 million, marking a 1.1% decrease compared to the previous year.

In contrast, BYD reported a 41% surge in EV sales, reaching 1.77 million vehicles.

This marked Tesla’s first year-on-year decline in deliveries since 2011.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, remarked, "The shine has come off Tesla."

Nevertheless, analysts at Wedbush maintained an optimistic outlook, emphasizing the potential for Tesla’s continued growth under a Trump presidency.

"We have always seen Musk and Tesla as leading players in disruptive global technology," they stated.

"The foundation of this grand strategic vision has been laid over the past five years.

"The next phase, driven by autonomous vehicles and AI advancements, will gain momentum under a Trump White House."

Photo: Elon Musk. (Photo by Andrew Harnik/Getty Images)