Tesla, the electric vehicle manufacturer headed by Elon Musk, just posted its third quarter 2025 vehicle delivery figures. That’s why we were glad to see the company’s fourth quarter total of 497,099 deliveries. It represents a 7% jump from the same time last year, when the company reported 462,890 deliveries. The T4 America report paints a striking picture of that decline in deliveries. This means that Tesla is down 14% year-over-year from the second quarter of 2025 with Tesla delivering 384,122 deliveries in that quarter.
This latest quarterly report represents the second straight decline in Tesla’s vehicle deliveries. The second quarter experienced a dramatic drop. FactSet had projected about 447,600 deliveries in that time frame. Independent researchers had expected even higher numbers, estimating at least 481,000 more deliveries. Tesla’s overall performance in Q3 showcases its resilience. This is a quarter-to-quarter improvement from the last downbeat quarter, where the company’s revenue declined despite falling short of expectations.
On the production front, Tesla’s third quarter 2025 production came in at 447,450 vehicles. The company reported a much faster than expected decline in demand in the European market. They more than make up for this drop in the U.S. with higher sales stateside. Clients in the U.S. industry scrambled to get their hands on EVs. They were hoping to benefit from the federal solar investment tax credit that was scheduled to expire soon after a complex spending bill was signed into law by President Donald Trump on July 19.
Besides vehicle deliveries, Tesla announced its deployments of its energy storage battery product for the quarter. That’s the amount of energy storage solutions that company deployed just in Q2 of 2025 — 9.6 GWh. This is a big jump from last year with only 6.9 GWh deployed in Q1 and Q2 of 2022. Musk’s artificial intelligence venture, xAI, has emerged as a significant customer for Tesla’s battery energy storage systems in recent quarters, contributing to the company’s overall growth strategy in renewable energy solutions.
Investors were pleased with Tesla’s Q3 report, with shares rising more than 1% on the day of announcement. The mixed results highlight both challenges and opportunities for the automaker as it navigates an evolving market landscape characterized by fluctuating demand and competition.