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

Tesla Inc. (NASDAQ:TSLA) wrapped up 2025 with solid vehicle output and record energy storage deployments, but mounting pressure in Europe is adding a counterweight to its otherwise strong operational finish.

Strong Q4 Output, Misses Street Delivery Estimates

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, highlighting continued growth outside the core auto 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.

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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.

Full-Year Deliveries Slightly Below Estimates

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.

Europe Remains A Key Weak Spot

Despite the strong global finish, Tesla continues to struggle in Europe. Registrations fell across several major markets in December, extending a slowdown that began in late 2024 amid intensifying competition.

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.

Chinese EV Makers Gain Ground

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 crossed a 13% market share across the EU, EFTA countries, and the U.K. Exports from China to Europe jumped 63% year over year, with total vehicle exports up more than 87%.

Earnings Ahead As Valuation Debate Continues

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 are up more than 19% over the past year, analysts remain split. 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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