TLDR
- In Q4 2025, Tesla delivered 418,227 vehicles, slightly lower than Wall Street’s 423,000 estimate but within the expected range.
- Following the delivery report, the stock rose 2.1% to $459.33 despite the quarter-on-quarter decline.
- In key European markets such as France and Sweden, sales collapsed by 70%, and the market share dropped to 1.7%.
- Tesla reported 52 million charging sessions in Q4, a 29% year-on-year increase.
- The company aims for a February 2026 launch of Full Self-Driving in Europe, subject to regulatory approval.
On Thursday, Tesla stock increased despite fourth-quarter deliveries falling short of expectations. The EV maker delivered 418,227 vehicles during this period.
Wall Street analysts had predicted closer to 423,000 deliveries. Some recent estimates had dropped to around 415,000 vehicles.
The fourth-quarter figure represents a decrease from the third quarter’s 497,099 deliveries. That third-quarter number was a company record.
Shares traded up 2.1% at $459.33 after the news. The market seemed relieved that deliveries did not miss by a larger margin.
The delivery drop was not unexpected. The federal government ended the $7,500 EV tax credit in September.
This effectively raised prices for American buyers. It also led to a rush to purchase vehicles in the third quarter before the credit expired.
Charging Network Shows Growth
shared some positive data prior to the delivery report. The company recorded 52 million charging sessions in the fourth quarter.
This is a 29% increase compared to the same period last year. The number indicates that Tesla owners are driving their vehicles more frequently.
Tesla’s charging network also serves other EV brands. The growth in sessions reflects broader EV adoption beyond just Tesla vehicles.
Investor attention is now turning to Tesla’s robotaxi business. The service launched in Austin with safety monitors in June.
CEO Elon Musk has hinted that safety monitors may be removed soon. This would mark a significant milestone for the autonomous driving program.
Europe Presents Major Challenge
While deliveries in the U.S. remained relatively stable, faces a crisis in Europe. Sales in key markets like France and Sweden declined by 70%.
In France, Tesla registered only 1,942 cars in December. The company once led that market but now lags behind local brands and Chinese competitors such as BYD.
Tesla’s market share across the EU and UK decreased from 2.4% to 1.7%. This occurred while overall EV registrations in Europe rose 27%.
Analysts point to two main issues. First, Tesla’s Model 3 and Model Y lineup is regarded as outdated compared to newer alternatives.
Second, Musk’s public political positions have damaged the brand. Polls in Germany and the UK show that his image has become unfavorable among environmentally conscious buyers.
These customers traditionally formed Tesla’s core European base. Many are switching to competitors instead.
Tesla recently introduced cheaper variants of its main models. The price cuts have not halted the sales decline.
Some buyers are waiting for the rumored “Juniper” refresh of the Model Y. Others have already switched to other brands.
The company is relying on software to address the European problem. Tesla aims for a February 2026 launch of Full Self-Driving in Europe.
The strategy involves obtaining a national exemption from the Dutch vehicle authority RDW. If approved, other European countries could follow promptly.
Tesla has logged over 1 million kilometers of testing across 17 European countries. However, RDW recently clarified that they have only agreed to a demonstration in February, not guaranteed approval.
Wall Street analysts remain cautious about the stock. The consensus rating on TipRanks is Hold based on 13 Buy, 11 Hold, and nine Sell ratings.
The average price target is $394.07, indicating a 12.4% downside from current levels. Tesla’s market cap of $1.6 trillion values the company at 220 times the estimated 2026 earnings.
