Tesla relinquished its position as the top-selling electric vehicle (EV) manufacturer globally on Friday due to declining sales for the second consecutive year amidst customer backlash against Elon Musk’s political views and intense competition from international rivals. The company disclosed that it delivered 1.64 million vehicles in 2025, marking a nine percent decrease from the previous year. Chinese competitor BYD, which achieved sales of 2.26 million vehicles in the same period, now holds the title of the world’s largest EV producer.
In the fourth quarter, Tesla’s sales amounted to 418,227 units, falling short of the 440,000 units forecasted by analysts surveyed by FactSet. This decline in sales may have been influenced by the conclusion of a $7,500 US tax credit phased out by the Trump administration at the end of September.
Despite facing various challenges, Tesla’s stock saw an approximately 11 percent increase by the end of 2025, with investors optimistic about CEO Musk’s plans to position Tesla as a pioneer in the robotaxi sector and introduce humanoid robots for household and office tasks. Prior to market opening on Friday, Tesla’s shares climbed nearly two percent.