Tesla relinquished its position as the top-selling electric vehicle (EV) manufacturer globally on Friday due to a decline in sales for the second consecutive year, attributed to a backlash from customers regarding Elon Musk’s political affiliations and increased competition from international rivals. The company reported a drop of nine percent in vehicle deliveries in 2025, amounting to 1.64 million units.
Surpassing Tesla, Chinese automaker BYD emerged as the largest EV producer by selling 2.26 million vehicles in the previous year. In the fourth quarter alone, Tesla’s sales reached 418,227 units, falling short of the 440,000 units anticipated by analysts surveyed by FactSet. The decrease in sales could be linked 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 witnessed an approximately 11 percent increase by the end of 2025. Investors remain optimistic about CEO Elon Musk’s vision to establish Tesla as a pioneer in the robotaxi industry and introduce humanoid robots for everyday tasks in households and workplaces. Prior to the market opening on Friday, Tesla’s shares rose by nearly two percent.