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Tesla Misses Q4 Delivery Targets as BYD Surges—What It Means for 2026!

Tesla just reported a bruising end to 2025. Fourth-quarter deliveries came in at 418,227 units—down 16% from the same period last year and shy of Wall Street’s 426,000 estimate. For the full year, deliveries fell 8.6% to 1.64 million vehicles. Production also declined slightly to 434,358 in Q4, suggesting softening demand. What happened? The list is long and telling. The end of the U.S. federal $7,500 EV tax credit on Sept. 30 pulled forward demand into Q3 and left a vacuum in Q4. Meanwhile, Chinese rival BYD overtook Tesla as the world’s top EV seller with 2.26 million units in 2025—nearly 40% more than Tesla. In Europe, the company lost market share amid growing backlash tied to Elon Musk’s political stances and rising competition from names like Volkswagen and Geely. Analysts were mixed: some called the quarter “better than feared,” while others warned of prolonged demand pressures.