On January 2, reports emerged indicating that Tesla (TSLA.O) disclosed on Friday that its automotive delivery volume for the fourth quarter had seen a steeper decline than anticipated, marking the second consecutive year of a drop in annual sales. Following the termination of tax subsidies, Tesla has faced difficulties in stimulating market demand for its electric vehicles.

In the fourth quarter, Tesla delivered 418,227 vehicles, a significant decrease from the 495,570 vehicles handed over to customers in the same period the previous year. In contrast, analysts had projected deliveries to hit 434,487 vehicles. For the entire year, Tesla's delivery tally stood at 1.64 million vehicles, a decline from the 1.79 million vehicles delivered in 2024. This figure was more or less in line with analysts' earlier full-year delivery estimate of approximately 1.65 million vehicles.

These numbers have sparked concerns in the market regarding Tesla's capacity to stabilize its core automotive operations. Nevertheless, Tesla is pivoting towards future-oriented projects, such as robotics and autonomous vehicles, to uphold its lofty valuation. Analysts highlight that Tesla's most formidable challenge in 2025 stems from the North American and European markets, where competition is becoming increasingly fierce. Moreover, earlier in the year, the company encountered negative brand perceptions due to Musk's political statements. Despite the downturn in vehicle deliveries, Tesla's stock price has surged by around 11.4% in 2025, leading to a further augmentation of Musk's wealth.