Tesla Q4 2025 Deliveries Drop 16%: Production Outpaces Sales as Annual Volumes Fall 7.3%

Tesla released its fourth quarter 2025 numbers, and they paint a picture of slowing momentum. The company delivered 418,227 vehicles during the quarter while producing 434,358 units. That’s a 16% drop compared to the same period last year and marks a clear shift from the explosive growth Tesla became known for. The global fleet now stands at 8.9 million vehicles on the road.

For the full year, deliveries fell 7.3% compared to 2024. Tesla’s sales peaked back in 2023, and the latest results suggest that surge is firmly in the rearview mirror. What stands out here is that production keeps running ahead of deliveries, meaning inventory is building up. When you make more cars than you can sell, it usually signals softer demand or pricing pressure.

“Delivery growth came in at –16% quarter on quarter and –16% year on year, marking a notable contraction after several years of rapid expansion.”

The broader EV market is adjusting. Demand isn’t as predictable as it was a couple of years ago, pricing has gotten more competitive, and macroeconomic conditions are forcing automakers to recalibrate. Tesla is still the biggest EV maker globally by volume, so when their numbers slide, people pay attention. These quarterly reports move markets and shape expectations around where the industry is headed.

Tesla’s shift from aggressive expansion to something more measured reflects the reality of a maturing market. The stock is closely watched, and results like these influence how investors view not just Tesla, but the entire EV sector’s trajectory moving forward.

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My Take:

Tesla’s Q4 miss isn’t just about one quarter. The inventory buildup and negative growth signal demand challenges that won’t fix themselves quickly. When production consistently outpaces sales, it forces tough decisions on pricing and margins.

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Source: Roland Pircher