BYD takes the lead after a second consecutive year of declining Tesla sales
Tesla has officially lost its status as the world’s largest electric vehicle manufacturer, following a second straight year of falling sales, according to Mediafax. Customer backlash over Elon Musk’s political positions, combined with intensifying global competition, weighed on demand.
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Tesla delivered 1.64 million vehicles in 2025, down 9% year-on-year. Meanwhile, Chinese rival BYD sold 2.26 million vehicles, overtaking Tesla as the world’s top EV producer, according to Associated Press.
Fourth-quarter deliveries reached 418,227 units, below the 440,000 forecast by analysts surveyed by FactSet. Sales may have been further pressured by the expiration of a $7,500 federal tax credit, which was phased out at the end of September under the Trump administration.
Despite these challenges, Tesla shares ended 2025 up about 11%, as investors continue to bet on Musk’s vision to position the company as a leader in robotaxi services and humanoid robots designed to perform basic tasks in homes and offices. Tesla stock rose nearly 2% ahead of Friday’s market open.
Photo: TIME
