Tesla posts 8.6% sales decline in 2025, marking second straight annual drop

Tesla published its final production and delivery numbers showing a sharp fall in sales: the company sold 1,636,129 cars in 2025, an 8.6 percent year‑over‑year drop and 153,097 fewer vehicles than in 2024.

The decline was steeper in the fourth quarter, when sales fell almost 16 percent — 77,343 fewer electric vehicles than in the same period of 2024.

Analysts point to several factors behind the weakness. Tesla remains heavily dependent on the Model 3 and Model Y, and aside from a mild cosmetic refresh the lineup has not kept pace with newer competitors from Europe and Asia.

Elon Musk’s Cybertruck has also been a major setback. Once pitched as a sub‑$40,000 vehicle with production slated years ago, the pickup has been described as a high‑profile failure and has disrupted other company plans.

One casualty is Tesla’s in‑house battery cell effort, initially developed for the Cybertruck and later pitched for stationary storage and other EVs; it appears to have stalled amid weak demand. Electrek reported that South Korean supplier L&F wrote down a $2.9 billion contract with Tesla to just $7,386 — a reduction of more than 99 percent.

The company’s political stance has also been cited as a factor, with critics saying Musk’s embrace of the far right has depressed sales in markets such as California and Europe, where some buyers weigh political and ethical views when choosing EVs.

Key Topics

Sports, South Korea, Business, Tesla, Evs, Sales, Cybertruck