Tesla is no longer the world’s largest electric vehicle maker after sales fell for a second straight year.
Sales Slide in 2025
Tesla delivered 1.64 million vehicles in 2025, a 9% drop from the previous year. Chinese automaker BYD overtook the company with 2.26 million vehicles sold, taking the global EV crown.
Why Sales Fell
Analysts point to several factors, including backlash over CEO Elon Musk’s politics, increased competition overseas and the expiration of a $7,500 U.S. electric vehicle tax credit at the end of September. Fourth-quarter deliveries also missed expectations, coming in at 418,227 vehicles.
Stock and Investor Outlook
Tesla shares fell nearly 3% Friday, though the stock still ended 2025 up about 11%. Investors remain focused on Musk’s push beyond car sales, including robotaxis, energy storage and humanoid robots.
What’s Next?
Tesla recently introduced lower-priced versions of the Model Y and Model 3 to boost demand. Analysts expect weak earnings in early 2026 but believe sales could begin to recover later in the year as new models and autonomous driving efforts expand.
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