This article first appeared on GuruFocus.
Tesla (NASDAQ:TSLA) shares dipped about 2% on Friday after the EV company missed Q4 Delivery Estimates.
Tesla (NASDAQ:TSLA) said Friday that it has delivered 418,227 electric vehicles in the fourth quarter, down about 16% from the same period in 2024.
The total marked a second consecutive annual sales decline for the automaker, with Chinese rival BYD surpassing Tesla in yearly battery-electric vehicle deliveries. Tesla reported annual sales of roughly 1.64 million units, while BYD’s battery-powered car sales rose nearly 28% to 2.26 million units in 2025.
Wall Street forecasts had predicted about 441,000 vehicles in the fourth quarter, while Tesla’s own earlier analyst consensus expected roughly 423,000 units.
The decline follows the end of the U.S. $7,500 EV tax credit in September, which had driven a surge in third-quarter sales. Lower domestic demand affected Tesla and competitors including Ford, Hyundai, and Kia.
Tesla also faced challenges abroad, including falling deliveries in Europe and strong competition in China. Analysts note the company has not launched a major new vehicle since the Cybertruck in 2023, which has underperformed expectations.
The results may shift investor attention back to Tesla’s international strategy and upcoming product pipeline.