Quick overview

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Tesla finished the previous year on a high note. It was another matter entirely to win over actual car buyers as investors began to believe Elon Musk’s optimism about self-driving cars. Shares of the most valuable automobile company surged in the second half because the CEO promoted robotics and artificial intelligence

According to data compiled by Bloomberg, Tesla is projected to report on Friday that it delivered about 440,900 vehicles in the fourth quarter, a decrease of 11% from the same period last year. This week, Tesla made the unusual move of releasing its own average of analyst estimates, which was even more negative and predicted a 15% drop.

Wall Street’s outlook for 2026 has also become increasingly pessimistic. Wall Street’s outlook for 2026 has also become increasingly pessimistic. Analysts predicted that Tesla would deliver more than 3 million cars at this time two years ago. This year’s average delivery estimate has dropped to about 1.8 million.

Itts most popular vehicle, the carmaker’s vehicle sales got off to a terrible start  in part due to the company retooling production lines at each of its auto plants for the redesigned Model Y,

The strong criticism of its CEO’s work for US President Donald Trump was another significant contributing factor. Tesla’s stock had fallen 45% by early April, when Musk was openly at odds with administration officials over tariff policy. Musk accelerated the recovery by leaving the government and going back to work on a long-term project: launching a ride-hailing company using vehicles that he claims will eventually be autonomous.

Tesla introduced an invite-only Robotaxi service in Austin in June, and safety operators supervise each vehicle. Tesla introduced an invite-only Robotaxi service in Austin in June. Safety operators are on board to oversee each Model Y that is transporting Musk enthusiasts throughout the Texas capital. Investors have dismissed the safety concerns even though the vehicles broke traffic laws on the first day, attracting the attention of a federal regulator that has launched numerous investigations into the company’s driving systems.

Tesla proposed a new compensation package for Musk that could pay out up to $1 trillion, contingent on reaching milestones like delivering millions of robotaxis. Tesla shares were trading higher for the year shortly after the comeback was complete. In just over eight months, the company’s market capitalization had increased by more than $915 billion when the stock closed at a new all-time high on December 16.