Tesla reported fourth-quarter deliveries of 418,227 vehicles on January 2, capping a difficult 2025 with a second consecutive annual decline. Full-year deliveries totalled 1,636,129 — down 8.6% from 2024's 1.79 million. BYD, meanwhile, surged 28% to 2.26 million pure EVs, overtaking Tesla as the world's largest EV seller by volume.
The Numbers
| Period | Deliveries | Production | YoY Change |
|---|---|---|---|
| Q4 2025 | 418,227 | 434,358 | -16% |
| Full Year 2025 | 1,636,129 | 1,654,667 | -8.6% |
Q4 production outpaced deliveries by roughly 16,000 units, suggesting inventory build heading into 2026. The company had published an internal consensus estimate of 422,850 Q4 deliveries, meaning the actual result fell slightly short.
European Context
Europe was Tesla's weakest major region in 2025. Full-year registrations dropped approximately 28% to around 235,000 units across the continent. Germany declined 48.4%, France fell 37.5%, and only Norway — driven by tax-change buying — bucked the trend.
The December data was no different. UK registrations fell 29% to 6,323 units. Across the EU, Tesla's market share continued to erode as Volkswagen, Škoda, and BYD expanded their electric lineups.
One Bright Spot: Energy Storage
Tesla's energy storage division recorded a record quarter, deploying 14.2 GWh of battery storage products. This business is increasingly important to Tesla's financial profile and may help offset slowing vehicle margins.
What Comes Next
Tesla enters 2026 with significant headwinds in Europe: no FSD availability, strong competition from VW and Chinese brands, and the loss of the "sustainable" brand identity. The Model 3 Standard at €36,990 and the potential European FSD launch in mid-2026 are the company's most immediate levers.
The Q4 earnings call, expected in late January, will likely address whether Tesla can return to growth in 2026 or whether the BYD-led competitive shift represents a structural change in the global EV market.