Tesla's ( NASDAQ:TSLA ) grip on the EV market took a hit in 2024, delivering a jolt to investors who've grown accustomed to the company's meteoric rise. Fourth-quarter deliveries hit 495,570up 2.3% year-over-yearbut it wasn't enough to salvage an underwhelming year. Total annual deliveries slipped to 1.79 million, a 1.1% drop from 2023 and Tesla's first year-over-year decline since 2015. The culprit? A sluggish first half and cooling demand for EVs worldwide, despite Tesla dangling juicy incentives like 0% financing and free charging. Investors wasted no time reactingTesla stock sank 4% Thursday morning, piling onto its recent slide from December's record highs.

Production numbers added fuel to the fire. Analysts had forecast Q4 deliveries of 512,250, but Tesla came in noticeably short. Full-year production landed at 1.77 million vehicles, below the 1.82 million expected. Meanwhile, Tesla's Full Self-Driving (FSD) version 13 made headlines for completing a flawless 15-mile test run, but safety concerns quickly dampened the excitement. The FSD tech failed to yield to a pedestrian at a crosswalkhardly the kind of performance to inspire confidence. With AI-driven initiatives like FSD accounting for majority of Tesla's valuation, the pressure is on to prove the technology is more than just a flashy demo.

The clock is ticking. Tesla's full-year financials drop on January 29, and all eyes will be on CEO Elon Musk for answers. The stakes couldn't be higher. Between production shortfalls, safety scrutiny, and a tragic Cybertruck explosion grabbing headlines, Tesla is juggling more balls than ever. Can Musk's magic turn this narrative around? Or is Tesla's crown starting to slip in the cutthroat EV game? Investors will need to buckle upthis ride is just getting started.

This article first appeared on GuruFocus .