Finally, a Little Good News for Tesla Investors

Tesla (TSLA 2.97%) has achieved many impressive feats in a short amount of time, but 2025 was a bumpy ride for the electric vehicle (EV) maker and its investors. Last year marked a roughly 9% drop in global deliveries, margin compression due to price cuts, its lowest U.S. market share in eight years, an aging vehicle lineup, and a polarizing CEO who simply rubs some consumers and investors the wrong way. For investors trying to look on the bright side, there’s finally a bit of good news!

A December to remember

U.S. EV registrations – which are used as a proxy for sales, as some automakers don’t break out sales per region, and some don’t offer the information monthly – declined a staggering 48% in December. It marked the first annual decline in EV registrations in at least a decade as people grappled with a number of headwinds that included high interest rates, high EV prices, and an expiring $7,500 federal EV tax credit, among other factors.

Amid all the gloom and doom, Tesla investors actually have a little glimmer of optimism in the data. Tesla, still the U.S. market leader by a landslide, outpaced the overall EV market in December with a lesser 35% decline in registrations to 42,403 vehicles. Better still, Tesla’s best-selling Model Y crossover dropped a more modest 24% to 29,121 registrations for December, quickly retaining its top spot among all EVs sold in the U.S. market.

It may feel odd to celebrate a 24% decline in Model Y registrations. But in the face of an aging vehicle portfolio, including the soon-to-be discontinued Model S sedan and Model X crossover, and increasing competitive options in the market, the Model Y is still performing really well. Its strength is industry-leading brand loyalty, which is keeping rival vehicle options at bay despite their freshness. “Tesla is not going away,” said Tom Libby, analyst for S&P Global Mobility, according to Automotive News.

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NASDAQ: TSLA

Tesla

Today’s Change

(-2.97%) $-12.13

Current Price

$395.69

Key Data Points

Market Cap

$1.5T

Day’s Range

$394.65 - $406.50

52wk Range

$214.25 - $498.83

Volume

15K

Avg Vol

65M

Gross Margin

18.03%

Movers and shakers

A couple of automakers from Detroit, Ford Motor Company (F 0.58%) and General Motors (GM 1.80%), also had notable moves in the data. In December, Ford remained the No. 2 EV brand in the U.S., but its registrations recorded a steeper drop than the industry, with a 61% decline. The explanation is simple: Ford ended F-150 Lightning production in December, signaling the end of the vehicle as we know it, in this form, and registrations plunged 69%.

Image source: Ford Motor Company.

General Motors’ luxury Cadillac brand ranked in the third spot. It managed to buck the nasty December declines by posting a 12% increase in registrations for the month, and a wildly more impressive 73% gain for the full-year 2025.

Ultimately, for Tesla investors, this is simply a little bit of good news that the Model Y is still resonating with consumers and is supported by its brand loyalty. Tesla still has a massive market share edge on its nearest competitors, but it dwindles by the day, and if the Model Y loses its connection to consumers, it will be a rough near-term for investors.