| Updated: 03-01-2025 09:40 IST | Created: 03-01-2025 09:40 IST This image is AI-generated and does not depict any real-life event or location. It is a fictional representation created for illustrative purposes only. SHARE Tesla recorded its first decline in annual deliveries, despite offering year-end incentives, as high borrowing costs deterred customers. The incentives, including interest-free financing and free fast-charging, couldn't boost sales as hoped. Factors like reduced European subsidies, shifting preferences towards hybrid vehicles in the U.S., and rising competition, especially from China's BYD, contributed to Tesla's challenges. BYD's aggressive pricing and market expansion helped it increase battery-electric vehicle sales by 12.1%, surpassing Tesla's growth. Amid slowing EV demand, Tesla is focusing on developing a self-driving taxi business, although commercialization is years away. Tesla also aims to boost sales with cheaper versions of current models and the Cybertruck. Despite optimistic sales forecasts, doubts linger over meeting targets due to sluggish demand for the Cybertruck. (With inputs from agencies.)