Tesla’s Deliveries Have Fallen for 2 Years: Should TSLA Investors Even Care Amid the AI Pivot?

Core Viewpoint - Tesla's Q4 2025 deliveries decreased by 16% year-over-year and fell short of analysts' forecasts, with total annual deliveries at 1.64 million, an 8.6% decline from the previous year [1] Group 1: Delivery Performance - Tesla's deliveries have declined annually for two consecutive years, with Q3 sales boosted by the $7,500 EV tax credit expiration [2] - BYD surpassed Tesla to become the world's largest seller of battery electric vehicles (BEVs) last year, indicating a significant shift in market leadership [3] Group 2: Market Position and Competition - Tesla is attempting to position itself as an artificial intelligence company, focusing on "physical AI" products, which has contributed to its high market capitalization of $1.4 trillion [4] - Despite the narrative that Tesla's deliveries may not matter, the company experienced a stock decline after missing Q4 delivery estimates, highlighting the importance of delivery performance [5] - Tesla's market share is being increasingly challenged by Chinese competitors like BYD and XPeng Motors, which are gaining traction both in China and globally [6]