Tesla released its fourth-quarter 2025 vehicle production and delivery report on Friday, indicating a second consecutive annual drop for Elon Musk’s automaker. Shares ended the day down 2.59%.
Here are the significant figures:
- Total Q4 deliveries: 418,227
- Total Q4 production: 434,358
- Total 2025 deliveries: 1.64 million
- Total 2025 production: 1.65 million
Wall Street anticipated 426,000 deliveries for the quarter, based on estimates gathered by StreetAccount.
In a consensus by the company posted on December 29, Tesla stated that the analysts surveyed expected a 15% decrease from the previous year to 422,850 vehicles.
Q4 2025 deliveries were approximately 16% lower than the fourth quarter of 2024, when Musk’s EV firm reported 495,570. Production numbers for Q4 2025 decreased 5.5% from a year ago, when Tesla manufactured 459,445 vehicles.
Throughout the entire year, Tesla’s deliveries declined by 8.6%, dropping from 1.79 million in 2024 to 1.64 million.
Tesla noted that deliveries of its entry-level Model 3 sedan and Model Y SUV accounted for 406,585 in the fourth quarter, totaling about 97% of all deliveries. Deliveries for its Model S, Model X, and Cybertruck were recorded at 11,642 during the quarter.
After unveiling its design, Tesla shared that it received more than 1 million reservations for the Cybertruck. However, the angular, steel pickup has yet to become a bestseller for the company.
Musk’s aerospace and defense venture, SpaceX, allegedly purchased tens of millions of dollars worth of Cybertrucks in 2025.
Tesla is encountering intensified competition in the electric vehicle sector from China’s BYD, South Korea’s Kia and Hyundai, and Volkswagen in Europe, among others.
BYD surpassed Tesla as the overall leading seller of EVs for the calendar year, announcing Thursday that its sales surged 28% to 2.26 million units.
Deliveries are the nearest estimate of sales reported by Tesla, although they are not strictly defined in the company’s communications with shareholders.
Within its energy division, Tesla reported that it deployed 14.2 gigawatt hours of battery energy storage products in the fourth quarter, following a record in the previous period, where it deployed 12.5 GWh.
Tesla’s battery energy storage solutions consist of backup batteries for residences and larger systems used in conjunction with data centers and utilities.
Tesla is set to announce its financial results for the fourth quarter on January 28.
Sales of Tesla’s vehicles were influenced by President Donald Trump’s choice to terminate a federal EV incentive by September 30, sooner than planned. This prompt completion shifted some EV sales ahead to the third quarter for Tesla and other automakers.
Even prior to that, the start of 2025 presented challenges for Tesla.
After heavily investing to support Trump’s re-election, Musk dedicated the first quarter of the year to leading the president’s DOGE initiative aimed at reducing the federal workforce.
Musk also supported Germany’s far-right anti-immigrant party, AfD, and later endorsed British anti-Muslim activist Tommy Robinson. Recently, Musk called for the dissolution of the European Union.
In part due to Musk’s controversial statements, Tesla has been subject to a persistent consumer backlash in Europe and the U.S. The company has not fully regained its footing, despite launching a new, more budget-friendly version of its Model Y SUV in October.
Notwithstanding, Tesla’s shares experienced a resurgence in the year’s latter half, soaring 40% in the third quarter and reaching a new record in mid-December. Musk acquired $1 billion worth of shares in September.
Shareholders approved a new $1 trillion compensation plan for Musk in November, granting the CEO additional shares and heightened control over the company. The approval followed Musk’s threat to potentially exit Tesla if the plan was not accepted.
Critics have raised concerns that the plan lacks requirements for Musk to commit a minimum amount of time to his Tesla responsibilities and that there are no restrictions on his political activities.
Although Tesla doesn’t report deliveries by geographical location, data from the European Automobile Manufacturers’ Association (ACEA) indicated that the company lost market presence in the region in 2025.
Tesla’s registrations in Europe dropped by 39% in the first 11 months of 2025, while its Chinese competitor BYD experienced a 240% increase in registrations within Europe. Overall, battery electric vehicles gained greater acceptance in Europe in 2025, comprising about 16% of all new vehicles sold.
Some analysts believe that sales of Tesla’s more affordable Model Y standard, which the company debuted in October, will assist the firm in regaining ground in forthcoming quarters.
In a recent note, analysts at Cannacord Genuity mentioned that EV adoption “is accelerating swiftly in emerging markets like Thailand, Vietnam, and Brazil, where strong consumer interest may provide significant long-term benefits for Tesla, even amid fierce competition from Chinese manufacturers.”
In addition to BYD, Tesla now contends with other Chinese EV manufacturers such as Xiaomi and Geely.
However, Tesla is convincing investors with Musk’s vision of the future, or what he refers to as “sustainable abundance,” rather than solely focusing on EV sales. This vision encompasses robotaxis, which Musk has long promised, and humanoid robots, which he claims will one day serve as factory workers, babysitters, crime stoppers, and surgeons.
WATCH: Tesla must make significant efforts to maintain its share price
