Tesla records drop in vehicle deliveries in 2025 and loses leadership to Chinese BYD By Beatriz
3 min read
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Tesla announced vehicle deliveries for the fourth quarter of 2025, recording 418,227 units. The number was below analysts’ expectations, which projected around 423 thousand vehicles. Essa fall represents a decline of approximately 16% compared to the same period in 2024.
Year to date, the company delivered 1.636 million vehicles, a reduction of around 8.6% compared to the 1.789 million in 2024. Trata is the second consecutive annual decline for the automaker.
Meanwhile, Chinese BYD sold 2.26 million pure electric vehicles in 2025, with growth of 28% over the previous year, taking global leadership in the segment.
Fourth quarter numbers
Tesla produced 434,358 vehicles between October and December.
Deliveries were mainly made up of models 3 and Y, which totaled 406,585 units.
The other models, including S, X and Cybertruck, totaled 11,642 deliveries.
- 16% drop in deliveries compared to the fourth quarter of 2024.
- Production reduced 5.8% in the same comparison.
- The decline came after the end of the tax incentive in September.
Annual performance of Tesla
The total of 1.636 million deliveries in 2025 marked the second consecutive year of decline.
By 2023, the company had reached a peak of 1.8 million units.
Annual production stood at 1.654 million vehicles.
BYD’s rise in the market
BYD recorded sales of 2.26 million pure EVs for the year.
The 28% growth allowed it to surpass Tesla for the first time in annual volume.
The Chinese company also sold plug-in hybrids, totaling around 4.6 million vehicles this year.
BYD exports reached more than 1 million units outside of China.
Growth in energy storage
Tesla highlighted the energy segment as a positive point.
In the fourth quarter, it deployed a record 14.2 GWh of storage products.
The previous record was 12.5 GWh in the third quarter.
In the full year, the total reached 46.7 GWh.
This growth reflects expansion in stationary batteries such as Powerwall and Megapack.
Intensified competition
Tesla faced increased pressure from Chinese and European rivals.
At Europa, it recorded significant drops throughout the year.
Brands such as Kia, Hyundai and Volkswagen gained ground in the electrical segment.
BYD expanded its international presence, with strong progress in Europa.
Main model details
Models 3 and Y accounted for more than 97% of deliveries in the quarter.
These entry vehicles represent the base volume of Tesla.
Premium models and the Cybertruck had reduced participation.
The company launched more affordable versions of the Model Y at the end of the year to stimulate demand.
Factors that influenced sales
The end of the US$7,500 federal tax credit in the US pushed sales into the third quarter.
Consumers made advance purchases before the benefit ended in September.
After that, the American market showed weakness.
Global competition and regional preferences also weighed on the results.
Tesla maintains focus on artificial intelligence and new products for future recovery.
Records in the energy segment
The fourth quarter marked the largest storage deployment ever recorded by the company.
Annual growth was more than 100% compared to previous periods.
Products like Megapack meet the demands of electrical networks and companies.
This division gains importance in the total revenue of Tesla.
Global comparison of pure EVs
- Tesla: 1.636 million units in 2025.
- BYD: 2.26 million units in 2025.
- Difference favors the Chinese in more than 620 thousand vehicles.
- Global EV market continued to expand despite regional challenges.
Tesla plans to release full fourth quarter financial results on January 28, 2026.
