With a total of 1,636,129 vehicles delivered in 2025, Tesla’s sales downturn has not only continued, it’s gaining speed.
This downturn follows what had been a decade-long streak of uninterrupted growth, with 2023 marking Tesla’s peak at 1.81 million vehicles delivered. But as competition increased and its model lineup aged, 2024 saw the first year-over-year decline, with 1.79 million deliveries. The sharper fall in 2025 underscores the pressure Tesla now faces in both mature and emerging EV markets.
Q4 Results Show Sharp Year-over-year Fall
In the final quarter of 2025, Tesla produced 434,358 vehicles and delivered 418,227, reflecting a 15% drop in deliveries compared to Q4 2024. The bulk of these deliveries came from the Model 3/Y, which accounted for 406,585 vehicles produced and 422,652 units delivered. Other models contributed a modest 11,642 deliveries.
Tesla also reported that 3% of Q4 deliveries were subject to operating lease accounting, a metric that remains a small portion of its total volume.
Notably, ahead of releasing its final numbers, Tesla took an unusual step: the company publicly shared a company-compiled delivery consensus based on 20 analysts, estimating 422,850 deliveries for Q4. This internal forecast was considerably more conservative than broader public estimates, which ranged between 440,000 and 450,000 vehicles.
Full-year 2025 Figures Confirm Accelerating Decline
Tesla’s total output in 2025 reached 1,654,667 vehicles, with 1,600,767 units produced under the Model 3/Y line, and 53,900 across its other models. In terms of deliveries, 1,585,279 vehicles were Model 3/Y, while 50,850 were from other categories. These figures confirm a 9% year-over-year drop compared to 2024’s total deliveries.
The accelerated decline reflects multiple factors, including Tesla’s aging vehicle lineup, increasing competition in Europe and China, and the loss of key incentives in the United States. The combined effect of these market shifts has amplified the company’s difficulties in maintaining delivery volume.
The beginning of 2025 had already shown signs of instability, with a steeper drop in deliveries attributed not only to external competition but also to brand-related issues, particularly in international markets.
Energy Storage Hits Record But Impact Remains Limited
Amid the drop in vehicle deliveries, Tesla reported a new milestone in its energy division: 14.2 GWh of energy storage deployment in 2025. This figure marks a record for the company and provides a bright spot in an otherwise difficult year.
Still, this success offers only a limited counterweight. The gains in energy storage are not nearly enough to compensate for the significant drop in Tesla’s core electric vehicle business. The company is closing 2025 with declining revenue and earnings, despite its continued standing as a leading name in a globally growing EV market.
While some investors may continue to put their faith in Elon Musk’s pivot to AI, the immediate reality of Tesla’s numbers suggests a business navigating through a sustained period of contraction.
