Tesla reported its fourth-quarter and full-year vehicle production and delivery figures for 2025, revealing a decline in both metrics for the second consecutive year. The company delivered 1.64 million vehicles in 2025, an 8.6% decrease from the previous year’s total of 1.79 million. In the fourth quarter alone, Tesla delivered 418,227 vehicles and produced 434,358.
The fourth-quarter deliveries fell approximately 16% compared to the same period in 2024, while production saw a smaller decline of 5.5%. Analysts had anticipated slightly higher deliveries, with expectations hovering around 426,000 for the quarter. The bulk of Tesla's Q4 deliveries came from its Model 3 sedan and Model Y SUV, which together accounted for nearly all deliveries.
Despite a strong initial reception for the Cybertruck, with over 1 million reservations, its sales have not met expectations. Additionally, heightened competition from other automakers, particularly BYD, Kia, Hyundai, and Volkswagen, is impacting Tesla's market position. BYD overtook Tesla as the world's largest seller of electric vehicles, reporting a 28% increase in sales to 2.26 million units in 2025.
Tesla’s energy division also reported progress, deploying 14.2 gigawatt hours of battery energy storage products in Q4, building on a record prior quarter. Looking ahead, analysts suggest that the launch of a more affordable Model Y variant in October could help Tesla regain market traction, especially in emerging markets.
Tesla's financial results for the fourth quarter will be disclosed on January 28, 2026, amid ongoing discussions about CEO Elon Musk's political activities and their potential impact on the company’s reputation and sales.