Tesla experienced its first annual decline in sales since the onset of the pandemic, with increased competition from Chinese and Western electric vehicle (EV) manufacturers impacting demand. Despite producing 433,000 vehicles, deliveries only reached 387,000, down from previous quarters. The company responded by cutting prices, affecting profit margins and stock performance. Increased competition led Tesla to lose its title as the world’s top EV maker in the fourth quarter. Various factors, including production issues and factory closures, contributed to the decline in sales. As a result, Tesla’s stock fell by 5%, reflecting investor concerns about its future growth prospects amidst intensified competition.
Tesla Sees First Annual Sales Drop Amid Rising EV Competition
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