Tesla Electric Vehicle Sales Decline 8.6% in 2025
Speakers
Ed Ludlow
— Co-Host, Bloomberg Technology
Craig Trudell
— Reporter, Bloomberg News
Summary
Ed Ludlow discusses Tesla's weaker fourth-quarter and full-year vehicle delivery figures, noting that the stock's valuation is largely disconnected from the automotive business. He also highlights the expiration of the U.S. federal EV tax credit, Tesla's end-of-quarter discounting, Ford's retreat from an all-in EV strategy, and divergent regional EV demand. The segment suggests investors should watch Tesla's non-auto narratives and monitor how U.S. automakers adapt to a potentially shrinking domestic EV market.
- Tesla Q4 deliveries fell 16% and full-year sales dropped 8.6%.
- Ed Ludlow says Tesla stock valuation is not tied to vehicle deliveries.
- The expiration of the $7,500 federal EV tax credit may shrink U.S. EV sales.
- Tesla offered discounts and incentives to boost quarter-end deliveries.
- Ford is pivoting away from an all-in EV strategy toward hybrids and combustion.
- EV demand is mixed, with pressure in China and momentum in parts of Europe.
Ideas
Tesla stock ignores weak auto deliveries.
Tesla's Q4 and full-year vehicle deliveries fell, but the stock's valuation is not driven by the core automotive delivery business. Investors are valuing Tesla on other narratives, so weak EV delivery numbers are not the key driver for the stock.
Ford pivots from EVs to hybrids.
Ford has signaled that it sees no point in going all-in on EVs even in the medium to long term because buyer demand is not there, and is pivoting back to combustion engines with hybrids. This is a significant strategic shift for Ford.
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