Tesla reports annual vehicle deliveries fell for second straight year, Q4 results miss forecasts

Group 1: Vehicle Deliveries - In the fourth quarter, Tesla's total vehicle deliveries were 418,227, representing a 15% decline from 495,570 vehicles delivered in the same period last year [1] - For the full year, Tesla delivered 1.64 million vehicles, which is an 8% decrease compared to 2024, marking the second consecutive year of annual sales declines [2] - Tesla's fourth quarter delivery total fell short of Wall Street forecasts, which were just under 423,000 vehicles [1][2] Group 2: Market Analysis - Analysts speculated that Tesla's early release of delivery estimates was a strategy to mitigate the impact of a poor delivery report [3] - Cox Automotive's Kelley Blue Book estimated that Tesla's US sales fell to 125,900 units in the quarter, down 22.4% [4] - The loss of the $7,500 EV tax credit at the start of the quarter contributed to the decline in deliveries [3] Group 3: Future Prospects - Despite the smaller-than-expected fleet size, the narrative around Tesla's robotaxi remains strong, according to analysts [5] - Tesla's CEO Elon Musk mentioned plans for 1,000 vehicles in the Bay Area and over 500 in Austin, although tracking suggests these levels may not be achieved [6] - Analysts believe that the transition to an AI-driven valuation for Tesla is beginning, with significant developments expected in full self-driving and autonomous services [7]