Tesla has been dethroned as the top-selling electric vehicle (EV) manufacturer globally, with sales declining for the second consecutive year due to customer backlash against Elon Musk’s political affiliations and increased competition from international rivals. In 2025, Tesla reported delivering 1.64 million vehicles, marking a nine percent drop compared to the previous year. The Chinese automaker BYD surpassed Tesla by selling 2.26 million EVs last year, becoming the new leader in the EV market.
Tesla’s sales for the fourth quarter totaled 418,227 vehicles, falling short of the 440,000 units expected by analysts polled by FactSet. The decrease in sales can be attributed to the expiration of a $7,500 US tax credit, phased out by the Trump administration in September. Despite facing various challenges, Tesla’s stock saw an approximately 11 percent increase in 2025, with investors banking on CEO Elon Musk’s vision to establish Tesla as a pioneer in robotaxi services and popularize humanoid robots for household and office tasks.
Ahead of the market opening on Friday, Tesla’s shares surged nearly two percent, indicating optimism among investors about the company’s future prospects.
