Tesla shares reversed early gains and moved lower on Friday, falling about 1.6% after the electric vehicle maker reported fourth-quarter delivery figures that came in below market expectations.
According to the company’s release, Tesla delivered 418,227 vehicles in the fourth quarter. This missed the company-compiled consensus forecast of 422,850 units and the Bloomberg consensus estimate of 440,907.
Vehicle production totaled 434,358 units during the quarter. That marked a 5.5% decline from a year earlier and also fell short of the Bloomberg estimate of 470,780 vehicles.
Overall deliveries dropped 16% compared with the same quarter last year.
Deliveries of the Model 3 and Model Y reached 406,585 units, representing a 14% year-over-year decline and missing the Bloomberg consensus estimate of 421,796. Production of those models totaled 422,652 vehicles, down 3.2% from the prior year.
Earlier on Friday, data from automotive industry groups showed that Tesla vehicle registrations declined in Portugal, France, Sweden, and Spain, while registrations rose sharply in Norway.
Following the delivery report, Dan Ives of Wedbush said the fourth-quarter results were “better than whisper numbers” and noted that investor focus is increasingly shifting toward artificial intelligence heading into 2026.
Ives described the results as “better than feared” and a modest positive step for Tesla’s longer-term narrative, while cautioning that Europe continues to present a headwind for the company. He added that Tesla could ultimately dominate the global autonomous vehicle market, citing its scale and expanding AI capabilities.
Meanwhile, William Stein of Truist emphasized that deliveries missed expectations and pointed out that Tesla did not provide updates on key areas such as AI initiatives or new vehicle launches.
Stein said investors should focus more on Tesla’s AI projects, particularly full self-driving technology, arguing that these developments matter more for long-term cash flow and stock performance than near-term delivery figures. He slightly lowered near-term earnings estimates and reduced his price target to $439 from $444, while maintaining a hold rating.
