Tesla Inc. (NASDAQ:TSLA) concluded 2025 with strong vehicle output and record energy storage deployments, but quarterly and full-year comparisons highlight slowing momentum, particularly in the automotive sector.



<h2>Strong Q4 Output, Misses Street Delivery Estimates</h2>



In the fourth quarter, Tesla produced 434,358 vehicles and delivered 418,227 vehicles, below the Visible Alpha delivery estimate of 434,487 units. Energy storage deployments reached a record 14.2 gigawatt-hours, underscoring continued growth beyond the core automotive business.



Deliveries were about 16% lower than the fourth quarter of 2024, when Tesla reported 495,570 deliveries. Production declined 5.5% year over year from 459,445 vehicles produced in the same period last year.



Also Read: Musk Says Tesla Model Y Is World’s Bestselling Vehicle Again In 2025, But Grok Disagrees



Model 3 and Model Y production totaled 422,652 vehicles, with 406,585 deliveries, about 3% subject to operating lease accounting. Other models contributed 11,706 vehicles produced and 11,642 deliveries, roughly 5% under lease accounting.



<h2>Full-Year Deliveries Slightly Below Estimates</h2>



For full-year 2025, Tesla produced 1.65 million vehicles and delivered approximately 1.64 million, narrowly missing the Visible Alpha estimate of 1.65 million deliveries.



Deliveries fell 8.6% from 2024, when Tesla delivered 1.79 million vehicles.



Model 3 and Model Y accounted for the bulk of volume, with 1,600,767 vehicles produced and 1,585,279 delivered, while other models added 50,850 deliveries. Annual energy storage deployments climbed to 46.7 gigawatt-hours.



<h2>Europe Remains A Key Weak Spot</h2>



Tesla’s delivery slowdown has been especially pronounced in Europe, where registrations declined across several major markets in December despite the rollout of lower-priced versions of the Model Y and Model 3.



In France, registrations plunged 66% in December and dropped 37% for the full year. Sweden saw an even steeper decline, with December registrations down 71% and annual sales sliding 70%. Tesla also posted full-year declines in Portugal (-22%) and Spain (-4%).



By November, Tesla’s market share across Europe, the U.K., and the European Free Trade Association slipped to 1.7% from 2.4% a year earlier, even as electric vehicles captured 19% of the overall car market. The weakness persisted despite Tesla rolling out lower-priced versions of the Model Y and Model 3.



Norway remained a rare bright spot. Tesla registrations surged 89% in December to 5,679 vehicles, lifting its market share above 19% and marking a record sales year in a market where nearly all new car purchases are electric.



<h2>Chinese EV Makers Gain Ground</h2>



Tesla’s European challenges come as Chinese automakers rapidly expand their footprint. Chinese brands captured a record 12.8% share of Europe’s EV market in November, led by BYD Co. Ltd. (OTC:BYDDY), Stellantis NV (NYSE:STLA)-backed Leapmotor, and Chery.



BYD posted nearly 222% year-over-year sales growth in Europe in November, while Tesla reported declines. Chinese-made hybrids also achieved a 13% market share across the EU, EFTA countries, and the UK. Exports from China to Europe increased by 63% year-over-year, with total vehicle exports rising by more than 87%.



<h2>Earnings Ahead As Valuation Debate Continues</h2>



Tesla will report fourth-quarter 2025 earnings after market close on January 28, 2026. Wall Street expects $24.87 billion in revenue and EPS of 45 cents.



While Tesla shares have risen by more than 19% over the past year, analysts remain divided. Morgan Stanley has turned more cautious on valuation, while Wedbush argues Tesla’s long-term upside hinges more on autonomy, AI, and robotaxis than near-term vehicle sales.



TSLA Price Action: Tesla shares were up 0.82% at $453.40 at the time of publication on Friday, according to Benzinga Pro data.



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Tesla Inc. reported a 16% decline in Q4 deliveries compared to the previous year, with 418,227 vehicles delivered, missing estimates. Despite strong energy storage deployments of 14.2 GWh, the automotive sector shows slowing momentum, particularly in Europe, where registrations fell sharply. For the full year, Tesla delivered approximately 1.64 million vehicles, down 8.6% from 2024. The company faces increasing competition from Chinese EV makers, while analysts remain divided on Tesla's valuation ahead of its Q4 earnings report.

- Tesla Inc. ended 2025 with strong vehicle output of 1.65 million but fell short of delivery estimates, especially in Europe, where registrations significantly dropped.  
- The fourth quarter saw production of 434,358 vehicles and record energy storage of 14.2 gigawatt-hours, demonstrating growth despite challenges faced in the automotive sector.  
- Although Tesla's shares have risen over the past year, concerns about its valuation remain, with upcoming earnings expectations of $24.87 billion in revenue and EPS of 45 cents.

Tesla Deliveries Slide 16% In Q4, Energy Storage Hits Records