Tesla delivered 1.64 million vehicles in 2025, down 9%, as BYD becomes the top EV maker.
Tesla has lost its position as the world’s bestselling electric vehicle maker after delivering 1.64 million cars in 2025, a 9% decline from the previous year. Chinese rival BYD sold 2.26 million vehicles last year, taking the top spot.
The drop comes amid stiff overseas competition, a phase-out of the $7,500 U.S. tax credit for EV buyers, and controversy surrounding CEO Elon Musk’s political activities. Fourth-quarter sales totaled 418,227, below analysts’ expectations of 440,000, despite the introduction of cheaper Model Y and Model 3 versions in October.
The new Model Y starts under $40,000, and the Model 3 under $37,000, aiming to boost Tesla’s competitiveness in Europe and Asia. Tesla stock finished 2025 with an 11% gain, reflecting investor confidence in Musk’s ambitions for robotaxi services and humanoid robots for home and office tasks.
Analysts forecast a 3% drop in sales and a nearly 40% fall in earnings per share for the fourth-quarter results due in late January, though they expect a rebound later in 2026.
Musk also secured a $1 trillion pay package contingent on Tesla hitting ambitious targets over the next decade, following a favorable Delaware Supreme Court ruling on a prior $550 billion package.
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