Tesla EV Deliveries Continue to Lag Global Rivals

Company Performance - Tesla's EV deliveries totaled 1.64 million vehicles in 2025, marking a second consecutive annual decline and falling behind BYD, which delivered over 2.2 million EVs [1] - Fourth-quarter deliveries showed a significant year-over-year decline, indicating a slowdown in Tesla's core automotive business [1] Market Sentiment - Despite the decline in EV deliveries, investor focus has shifted towards expectations surrounding artificial intelligence and autonomy, valuing Tesla more as a future AI platform than as an EV manufacturer [2] - The disconnect between current vehicle fundamentals and investor sentiment suggests that Tesla's market valuation may be overly reliant on future technological advancements [3] Competitive Landscape - As government incentives diminish and competition intensifies, Tesla faces increasing challenges in maintaining its EV delivery numbers [3] - While Tesla's energy storage segment is growing, it remains small compared to the scale implied by the company's market valuation, raising concerns about the sustainability of its growth strategy [3]