Tesla Faces Challenges Amidst Decline in Deliveries and Increased Competition

Tesla reported its first annual delivery decline due to fewer-than-expected electric vehicle handovers. Investor confidence is shaken as incentives failed to boost demand. Competition from China's BYD and reduced European subsidies further pressure Tesla, and the promise of self-driving technology remains distant.

Tesla has announced its first annual decline in vehicle deliveries, attributing the downturn to declining demand and an aging model lineup. The company fell short of expected delivery figures, with Elon Musk's promotional strategies, including zero-interest financing, failing to stimulate growth.

Faced with intensified competition from rivals like BYD and a shift toward lower-priced hybrids in the U.S., Tesla's market position is challenged. The company has turned focus to self-driving technologies and is reportedly seeking regulatory relief through political alliances.

Despite setbacks, Tesla's shares enjoyed a rise following Donald Trump's election win, as Elon Musk positions himself as a key figure in advocating for federal autonomous vehicle regulations. Nonetheless, Tesla continues to navigate scrutiny over its self-driving claims amidst ongoing investigations.

(With inputs from agencies.)