"Driving the news: The company on Friday reported a 8.6% drop in deliveries - a close approximation to sales - to 1.64 million for the year. The full-year drop came despite an unexpected boost to sales in the third quarter as consumers rushed to buy EVs to qualify for the federal tax cut before it expired at the end of September. Deliveries are now down 9.5% since their all-time high in 2023."
"The company suffered a backlash to Elon Musk's political activity in early 2025 and the end of the federal EV tax credit later in the year. Some prospective customers spurned Tesla after Musk became a close adviser to President Trump and leader of the budget-slashing Department of Government Efficiency. Musk acknowledged "some blowback" from his political involvement was hurting the company and eventually left the administration."
Deliveries fell 8.6% to 1.64 million for the year, with fourth-quarter deliveries of 418,227 down 15.6% year-over-year and missing Wall Street's estimate of 422,900. The fourth quarter was Tesla's worst since 2022 and deliveries are down 9.5% from the 2023 peak. Sales had a temporary boost in the third quarter as consumers rushed to claim a federal EV tax credit before it expired. Some customers avoided Tesla after Elon Musk's political role in early 2025, and Musk acknowledged there was 'some blowback' that hurt sales. Aging vehicle lineups with no new models this decade add pressure, while Tesla seeks growth through an expanded self-driving car service launched in Austin.
Read at Axios
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