Tesla shares had a stellar 2023, in large part because they had such a dismal end to 2022. By the same logic, this year could be tough for the world’s most traded stock.

The company delivered roughly 485,000 electric vehicles last quarter—a bit better than expected, but worse than its Chinese rival BYD, which sold about 526,000. It is the first time the EV pioneer has been outsold on a quarterly basis. With the Chinese company offering cheaper vehicles in a larger home market, it won’t be the last.