Tesla's quarterly deliveries fall more than expected on lower EV demand

Jan 2 (Reuters) - Tesla reported a bigger-than-expected autumn successful fourth-quarter deliveries connected Friday and posted a 2nd consecutive diminution successful yearly sales, arsenic ​it struggled to whip up request for its electrical vehicles pursuing ‌the withdrawal of taxation subsidies.

The tally raises questions astir whether Tesla tin stabilize its halfway car concern ‌following 2 consecutive years of income declines, adjacent arsenic it pivots to futuristic projects specified arsenic robotics and self-driving cars to warrant its steep valuation.

Tesla said it delivered 418,227 vehicles successful the October–December quarter, down from 495,570 a twelvemonth earlier. Analysts expected ⁠434,487 vehicles, according to Visible ‌Alpha.

For the afloat year, Tesla delivered 1.64 cardinal vehicles, compared with 1.79 cardinal successful 2024. Analysts polled by Visible Alpha had ‍expected deliveries of astir 1.65 cardinal vehicles, marking the company's 2nd consecutive yearly decline.

Tesla's fourth-quarter figures travel aft third-quarter deliveries were supported by a unreserved to fastener successful U.S. EV ​tax credits earlier they expired astatine the extremity of September, followed by a ‌sharper slowdown arsenic incentives rolled off.

EV request has softened crossed the manufacture since the extremity of September, erstwhile the Trump medication ended $7,500 national taxation credits, with Tesla besides facing rising contention globally.

Tesla successful October launched stripped-down "Standard" versions of the Model Y and Model 3, priced astir $5,000 beneath the erstwhile basal models, arsenic it ⁠sought to support volumes aft the taxation recognition ​loss.

Analysts person said Tesla's steepest unit successful 2025 ​has been successful North America and Europe, wherever contention has intensified and the institution besides faced marque backlash earlier successful the twelvemonth ‍tied to Musk's governmental ⁠rhetoric.

Even arsenic conveyance deliveries person weakened, Tesla shares person risen astir 11.4% successful 2025, boosting Musk's wealth.

Investor enthusiasm successful Tesla progressively centers connected Musk's ⁠push to grow robotaxis, amended self-driving tech and physique humanoid robots, adjacent though EV income inactive ‌account for the immense bulk of Tesla's existent revenue.

(Reporting by Akash ‌Sriram successful Bengaluru; Editing by Anil D'Silva)