With global sales falling 1.1% in 2024, Tesla (NASDAQ:TSLA) reported its first annual sales decline since at least 2015. Demand for electric vehicles fell in the U.S. and other regions, pushing total deliveries for the year down from $1 .81 million fell to 1.79 million in 2023.

With 495,570 automobiles delivered in the fourth quarter, up 2.3% from the previous quarter, Austin, Texas-based Still noted that the number fell short of Wall Street forecasts of 498,000, according to FactSet. Analysts also noted that Tesla’s average selling price most likely fell to just over $41,000 during the quarter, its lowest level in at least four years, potentially impacting its bottom line.

Tesla’s difficulties include outdated car models and tougher competition from startups in major countries such as China, Europe and the United States, as well as from long-established companies. Analysts also attribute declining sales to concerns about electric vehicle range, price and charging infrastructure.

After regularly forecasting 50% annual revenue growth, the company turned to low-cost leasing, free charging and 0% financing to stimulate demand. However, these discounts eroded Tesla’s industry-leading profit margins. As of Thursday morning, Tesla shares fell 3% despite rising over 50% in the past year. It’s important to note that fourth quarter results are scheduled for January 29th.

This article first appeared on GuruFocus.