Tesla said that it delivered 1.64 million vehicles in 2025, down 9% from a year earlier.
Tesla stock fell 2.6% to $438.07 on Friday.
The latest quarter was the first with sales of stripped-down versions of the Model Y and Model 3 that Musk unveiled in early October as part of an effort to revive sales. The new Model Y costs just under $40,000 while customers can buy the cheaper Model 3 for under $37,000. Those versions are expected to help Tesla compete with Chinese models in Europe and Asia.
For fourth-quarter earnings coming out in late January, analysts are expecting the company to post a 3% drop in sales and a nearly 40% drop in earnings per share, according to FactSet. Analysts expect the downward trend in sales and profits to eventually reverse itself as 2026 rolls along.
“Regulatory is going to be a big issue,” said Wedbush Securities analyst Dan Ives, a well-known bull on the stock. “We’re dealing with people’s lives.”
Still, Ives said he expects Tesla’s autonomous offerings will soon overcome any setbacks.
Musk scored another huge windfall two weeks ago when the Delaware Supreme Court reversed a decision that deprived him of a $55 billion pay package that Tesla doled out in 2018.
____
AP video journalist Mustakim Hasnath contributed to this report from London.
