Tesla’s position as the top-selling electric vehicle (EV) manufacturer globally was surpassed by Chinese competitor BYD, marking a decline in Tesla’s sales for the second consecutive year. In 2025, Tesla reported a delivery of 1.64 million vehicles, a nine percent drop from the previous year. BYD’s sales of 2.26 million vehicles in the same period secured its position as the largest EV maker worldwide.
During the fourth quarter, Tesla’s sales amounted to 418,227 vehicles, falling short of the 440,000 projected by analysts. The decrease in sales is attributed to the conclusion 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. Investors remain optimistic about CEO Elon Musk’s vision to position Tesla as a leader in the robotaxi service and introduce humanoid robots for household and office tasks. Tesla’s shares rose nearly two percent before the market opening on Friday.