On the Dash:
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Tesla’s 2025 vehicle deliveries fell 8.6% from 2024, totaling 1.64 million units.
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Model 3 and Model Y dominate deliveries, accounting for 97% of Q4 output.
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Rising competition from global EV makers, including BYD, is pressuring Tesla’s market share.
Tesla reported its Q4 2025 vehicle delivery and production output on Friday, making a second annual decline. During the fourth quarter, the automaker delivered 418,227 vehicles, a 16% dip from a year earlier. The EV maker produced 434,358 units, a 5.5% year over year decline. For the full year, Tesla delivered 1.64 million units, a 8.6% decline from 1.79 million in 2024.
Tesla shares closed 2.59% lower on Friday after the news.
In the fourth quarter, the Model 3 sedan and Model Y SUV accounted for 406,585 deliveries, or 97%. The Model S, Model X and Cybertruck vehicles accounted for 11,642.
Tesla continues to face mounting competition in the EV segment, and sales are sliding globally. The recent elimination of the federal tax incentives in the United States resulted in a pull-ahead demand, but consumer demand for electric vehicles has been dampened.
However, even before the federal tax credits were scrapped, Tesla faced mounting challenges in the U.S. and abroad. When the Cybertruck was first announced, CEO Elon Musk boasted that the vehicle had over a million reservations. However, the truck has failed to become a top-seller for the automaker.
In addition, Musk’s political involvement with the Trump administration and endorsement of Germany’s AfD party caused significant controversy, prompting “Tesla Takedown” protests globally.
The automaker continues to face growing competition in the EV market from legacy automakers and Chinese rivals. China’s BYD recently surpassed Tesla as the top global EV maker, with its 2025 sales surging 28% to 2.26 million units.
