Tesla’s status as the top-selling electric vehicle (EV) manufacturer was relinquished on Friday following a decline in sales for the second consecutive year, attributed to customer dissatisfaction over CEO Elon Musk’s political views and increased competition abroad. The company reported a drop in deliveries to 1.64 million vehicles in 2025, marking a nine percent decrease from the previous year. Surpassing Tesla, Chinese automaker BYD emerged as the global leader in EV sales after selling 2.26 million units in the same period.
In the fourth quarter, Tesla’s sales figures reached 418,227 units, falling below the 440,000 forecasted by analysts surveyed by FactSet. The reduction in sales may have been influenced by the conclusion of a $7,500 US tax credit phased out by the Trump administration by the end of September. Despite facing various challenges, Tesla’s stock closed the year with an approximately 11% increase, as investors remain optimistic about Musk’s plans to establish Tesla as a frontrunner in the robotaxi sector and introduce humanoid robots for residential and commercial tasks.
Prior to market opening on Friday, Tesla’s shares climbed nearly two percent, reflecting positive investor sentiment.
