Tesla has been dethroned as the leading electric vehicle (EV) manufacturer globally due to a decline in sales for the second consecutive year, attributed to customer dissatisfaction over Elon Musk’s political stance and increased competition abroad. In 2025, Tesla reported a delivery of 1.64 million vehicles, a nine percent drop from the previous year. This shift in rankings now places Chinese competitor BYD at the forefront, having sold 2.26 million EVs in the same period.
During the fourth quarter, Tesla’s sales totaled 418,227 units, falling short of the 440,000 units anticipated by FactSet-analyzed experts. This decline in sales may have been influenced by 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 as investors remain optimistic about Elon Musk’s vision to position Tesla as a leader in robotaxi services and introduce humanoid robots for household and office tasks.
Ahead of the market opening on Friday, Tesla’s shares saw an almost two percent increase, reflecting ongoing investor confidence in the company’s future prospects.