Tesla’s financial fight has become harder as electric vehicle (EV) demand softens around the world. Revenue growth has slowed. Profit margins are under pressure. At the same time, consumer interest in EVs and Tesla’s brand is weakening.
Recent survey data show this change clearly. A global UBS EV survey found the share of buyers considering a Tesla dropped to 36%, down from 39% last year. As a preferred EV brand, Tesla slipped to 18% from 22%.
Sales figures tell a similar story. Tesla delivered about 1.64 million vehicles in 2025, roughly 9% fewer than in 2024. Q4 deliveries also declined sharply.
In key markets like China, Tesla’s sales have hit multi-year lows. Monthly deliveries in October fell to about 26,000 vehicles, down nearly 36% from a year earlier. Market share in China dropped to just over 3%. Tesla’s U.S. figures reflect weakening demand too. Estimated U.S. sales in early 2026 were down about 17% from the previous year, partly due to the end of the $7,500 federal EV tax credit.
At home in California, long a stronghold for Tesla, EV registrations have also declined. One market analysis showed a 36% drop in Model 3 registrations in 2024. Lower sales impact Tesla’s bottom line. Prices have been cut to stimulate demand. For example, cheaper Cybertruck versions were introduced and premium variant prices reduced.
Investors have noticed these trends. Tesla’s shares have shown volatility after declining delivery numbers and rising competition.
Competition is another key issue. Chinese automaker BYD overtook Tesla in EV deliveries, selling about 2.26 million units in 2025 compared to Tesla’s 1.64 million. Some analysts argue Tesla’s financial outlook is shifting. The company is investing heavily in AI and autonomous technology instead of focusing solely on car sales. The move may diversify future revenue.
Yet financial risk remains. If EV demand stays weak and competition grows, Tesla may struggle to sustain growth from its core business. For now, Tesla is adapting its strategy. Only time will show whether it can turn a slowing EV market into a long-term financial win.
Reference- Investing.com, AInvest, ETAuto, Electrek, Clean Technica