Tesla delivered 418,227 vehicles in Q4 2025, below Wall Street’s expectation of roughly 426,000 deliveries, according to CNBC and the company. Production totaled 434,358 vehicles. For the full year, Tesla delivered 1.64 million vehicles in 2025, down 9% from 2024 and marking the second consecutive annual decline in deliveries.

Shares are now down about 10% from recent highs, despite the stock holding relatively firm given the disappointing numbers so far today.

On December 29, the company publicly released its own analyst delivery consensus for the quarter via a press release on its investor relations website — a significant departure from its normal practice. Tesla typically compiles these estimates but only shares them privately with a select group of analysts and major investors.

The decision to publish the consensus suggested the automaker was trying to manage expectations ahead of what it appeared to anticipate would be a disappointing report.

That internal survey of 20 analysts projected 422,850 deliveries for the quarter, far below the broader public consensus at the time, which ranged from roughly 440,000 to 450,000 vehicles. Even Tesla’s lowered benchmark proved too high.

Fourth-quarter deliveries declined 16% from a year earlier, when Tesla delivered 495,570 vehicles. Production fell 5.5% from the 459,445 vehicles the company built in the same period last year.

EV blog electrek wrote in response to the numbers:

“This is pretty much exactly what we expected: a 15% drop year-over-year and a quarter-over-quarter as Tesla loses incentives in the US and its decline in Europe and China continues. Tesla did report of 14.2 GWh of energy storage deployment, a new record. It’s a silverlining, but it won’t be enough to compensate for the significant drop in electric vehicle deliveries.

Tesla will end 2025 with a second consecutive year of decline in revenue and earnings despite being a “leader” in the globally booming EV market. There’s room for concern: unless you 100% believe in Musk’s pivot to AI. Then, you have nothing to worry about.”

The company’s deliveries peaked at 1.81 million vehicles in 2023 before its growth began to stall amid intensifying global competition and an aging vehicle lineup.

Tesla’s fourth-quarter breakdown showed 406,585 Model 3 and Model Y vehicles delivered, along with 11,642 deliveries from its other models, for a total of 418,227.

The pressure on Tesla’s core auto business has become especially visible in Europe. While the company does not provide geographic delivery data, figures from the European Automobile Manufacturers’ Association show Tesla’s registrations in the region fell 39% in the first 11 months of 2025, even as overall battery-electric vehicle adoption increased. During the same period, Chinese rival BYD’s European registrations surged 240%.

Tesla now faces fierce competition from a growing list of global automakers, including BYD, Xiaomi and Geely in China, Hyundai and Kia in South Korea, and Volkswagen in Europe. At the same time, political controversies surrounding CEO Elon Musk have contributed to consumer backlash in both Europe and the United States, further weighing on the brand.

The company’s energy business offered a bright spot. Tesla said it deployed 14.2 gigawatt-hours of battery energy storage products in the fourth quarter, up from a record 12.5 GWh in the prior period. The division supplies large-scale systems to utilities and data centers as well as backup batteries for homes.

Some analysts believe Tesla’s newly introduced lower-priced Model Y standard, launched in October, could help stabilize sales in coming quarters, particularly in emerging markets such as Brazil, Thailand and Vietnam. Still, Tesla enters 2026 facing its most uncertain growth outlook in more than a decade, as investors increasingly weigh Elon Musk’s ambitious long-term vision for robotaxis and humanoid robots against the near-term realities of slowing vehicle demand.

Tesla is scheduled to report its full fourth-quarter financial results on Jan. 28.