Tesla's vehicle sales experienced a decline of 8.6 percent in 2025, marking the second consecutive year of decreased sales for the electric vehicle manufacturer. The company sold 1,636,129 vehicles in 2025, a decrease of 153,097 units compared to the 1,789,226 vehicles sold in 2024.

The final quarter of 2025 proved particularly challenging, with sales dropping nearly 16 percent compared to the same period in 2024. This translates to 77,343 fewer vehicles delivered in the last three months of 2025.

Several factors contributed to the sales downturn. Industry analysts point to the company's continued reliance on its Model 3 and Model Y vehicles, noting that these models, despite a minor refresh, are beginning to appear dated compared to newer offerings from European and Asian competitors.

The delayed and troubled launch of the Cybertruck also played a significant role. Originally slated for production in 2021 with a target price below $40,000, the Cybertruck's rollout has been plagued with issues. The Cybertruck's failure also impacted Tesla's in-house battery cell initiative, which was initially designed specifically for the vehicle.

The sales decline raises concerns about Tesla's market position and its ability to maintain its growth trajectory in an increasingly competitive electric vehicle market. The company's performance in 2026 will be closely watched by investors and industry observers alike.