Tesla reported a second consecutive annual decline in global electric vehicle deliveries in 2025, with a sharper drop in the fourth quarter underscoring mounting pressure from intensifying competition and weaker demand in key markets.
The U.S. electric vehicle maker delivered 418,227 vehicles globally in the fourth quarter of 2025, according to figures released by the company. That represented a decline of about 15% from a year earlier and left Tesla well short of the more than 570,000 deliveries needed in the quarter to prevent a full-year contraction.
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Tesla had earlier taken the unusual step of publishing its own internally compiled analyst consensus ahead of the release, putting expected fourth-quarter deliveries at 422,850 vehicles, below broader market estimates that ranged between 440,000 and 450,000 units.
For the full year, Tesla delivered 1,636,129 vehicles, down roughly 9% from 2024, marking its second straight year of declining deliveries after more than a decade of near-continuous growth. Annual deliveries had peaked at about 1.81 million units in 2023 before slipping to around 1.79 million in 2024.
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The downturn has been driven by a combination of factors, including an aging product lineup, reduced incentives in the United States, and heightened competition in Europe and China. Tesla’s struggles in those regions have offset gains elsewhere, even as global electric vehicle sales continue to grow.
Tesla said it deployed a record 14.2 gigawatt-hours of energy storage in 2025, highlighting faster growth in its energy business. However, analysts say that expansion is unlikely to fully offset the impact of declining vehicle sales on overall revenue and earnings, as the company closes out the year facing continued pressure in its core automotive segment.