Tesla has been dethroned as the top electric vehicle (EV) manufacturer globally, following a decline in sales for the second consecutive year due to customer dissatisfaction over Elon Musk’s political views and strong competition from international rivals. The company reported a drop in vehicle deliveries to 1.64 million in 2025, marking a nine percent decrease from the previous year. Chinese automaker BYD, which achieved sales of 2.26 million EVs in the same period, has now claimed the title of the world’s largest EV producer.
In the fourth quarter, Tesla’s sales figures reached 418,227 units, falling short of the 440,000 estimate projected by FactSet-analyzed analysts. The decrease in sales could be 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 closed the year with an approximately 11 percent gain, with investors banking on CEO Elon Musk’s vision to position Tesla as a frontrunner in the robotaxi industry and introduce humanoid robots for household and workplace tasks.
Prior to the market opening on Friday, Tesla’s stocks experienced a nearly two percent increase.