At a Glance
- Tesla delivered 1.64 million vehicles in 2025, down 9 % from 2024.
- BYD shipped 2.26 million cars, overtaking Tesla as the world’s top EV maker.
- Tesla’s Q4 sales totaled 418,227 units, below the 440,000 analysts expected.
- Why it matters: The shift signals a changing competitive landscape and challenges Tesla’s dominance.
Tesla’s decline in 2025 sales marked the second consecutive year of falling deliveries, and the company has been overtaken by Chinese rival BYD as the world’s best-selling electric-vehicle maker.
Sales Decline and Market Share
Tesla reported 1.64 million vehicle deliveries in 2025, a 9 % drop from the previous year, while BYD shipped 2.26 million cars, cementing its position as the top global EV producer.
Quarter-end sales totaled 418,227 units, missing the 440,000 analysts’ expectation and reflecting the loss of a $7,500 tax credit that expired in September.
- Customer revolt over Musk’s politics
- Expiring U.S. tax breaks
- Stiff overseas competition
New Models and Investor Optimism
Tesla introduced stripped-down versions of the Model Y and Model 3 in October, priced just under $40,000 and $37,000 respectively, to compete with cheaper Chinese models in Europe and Asia.
Despite the sales dip, investors remain bullish on Musk’s ambitions to lead the robotaxi, energy-storage, and robotics markets, and the company’s stock closed 2025 with an 11 % gain.
Tesla spokesperson said:
> “This could be a big win for Tesla.”
Elon Musk said:
> “Tesla’s CEO, Elon Musk, said that the company was moving into new markets.”
Leadership Changes and Future Outlook
Musk announced his departure as CEO on May 28 after his scheduled term ended, while the company secured a potentially enormous pay package that shareholders approved in November.
Analysts project a 3 % drop in Q4 sales and a nearly 40 % decline in earnings per share, though they expect the trend to reverse in 2026.
| Company | 2025 Deliveries |
|---|---|
| Tesla | 1.64 million |
| BYD | 2.26 million |
- Tesla’s stock up 0.5 % at $451.60 in early trading Friday.
- Musk’s $55 bn pay package reinstated by Delaware Supreme Court.
- Potential SpaceX IPO could make Musk first trillionaire.
Key Takeaways
- Tesla’s 2025 sales fell 9 %, losing the top spot to BYD.
- New stripped-down models aim to boost sales in price-sensitive markets.
- Investors remain confident in Musk’s broader ambitions despite the sales slump.
The shift in EV dominance underscores the intense competition and the company’s pivot toward future mobility solutions.
