Tesla shares sank Thursday morning after the electric vehicle maker reported fewer deliveries than analysts had expected for the fourth quarter.

Tesla's annual deliveries fell for the first time in 2024 despite the electric automaker handing over a record number of units in the fourth quarter, indicating tepid demand for its aging line-up of models.

Tesla ( NASDAQ: TSLA) reported deliveries of 495,570 for Q4 to fall well short of the consensus estimate for a tally of 506,673 vehicles. The electric vehicle maker said it produced 459,445 vehicles during the quarter. Tesla ( TSLA) said 5% of the deliveries total was subject to operating lease accounting.

Tesla reports fourth-quarter vehicle deliveries of 495,570, up from a year earlier but below estimates of about 507,000.

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After growing at least 35% every year from 2016 to 2023, Tesla’s year-over-year vehicle delivery growth slumped to -1% in 2024.

Wall Street is expecting fourth-quarter shipments of about 507,000 vehicles, but the EV maker might not have to hit that total to keep the stock from falling.