Tesla Loses Title as Top EV Maker as Sales Drop Again in 2025/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Tesla is no longer the world’s leading electric vehicle manufacturer. The American automaker slipped to second place in global EV sales in 2025, ending a multi-year run at the top, as rising competition from China, expiring U.S. tax incentives, and growing backlash toward CEO Elon Musk contributed to a 9% drop in deliveries.
Key Numbers: Quick Look
- Tesla 2025 EV deliveries: 1.64 million vehicles
- BYD 2025 EV deliveries: 2.26 million vehicles
- Tesla Q4 deliveries: 418,227 (below analyst expectations of 440,000)
- Tesla stock (Jan 2): Up 0.5% to $451.60
- Tesla 2025 stock gain: +11%
Deep Look: Tesla’s Sales Fall for Second Straight Year
NEW YORK (AP) — Tesla’s 2025 performance marks a continued downward trend. Sales dropped for the second consecutive year, a concerning sign for a company that once defined the electric vehicle market. The decline was attributed to several key factors:
- Customer pushback against Musk’s increasingly right-wing political views and social media presence
- The expiration of the $7,500 EV tax credit in the U.S. (phased out in September 2025 by the Trump administration)
- Aggressive competition from Chinese automaker BYD, now the new global EV sales leader
BYD Overtakes Tesla as Global EV Leader
China’s BYD sold 2.26 million electric vehicles in 2025, easily surpassing Tesla. The achievement is a stunning reversal for Tesla CEO Elon Musk, who had previously dismissed BYD as a minor threat.
Tesla’s fourth-quarter sales also came in below expectations, with 418,227 vehicles delivered — about 22,000 short of analyst predictions.
Musk’s Focus Shifts Beyond Cars
Despite declining sales, Tesla’s stock ended 2025 up 11%, with many investors choosing to focus on Musk’s bold new priorities. He has repeatedly claimed that driverless robotaxis, humanoid robots, and energy storage systems will drive Tesla’s future growth, rather than just vehicle sales.
To support these new ventures:
- Tesla unveiled cheaper versions of the Model 3 and Model Y in October, priced at under $37,000 and $40,000, respectively
- These stripped-down models are aimed at helping Tesla compete with Chinese rivals in global markets like Europe and Asia
Musk has told shareholders that falling car sales don’t matter, and that Tesla’s value now lies in innovation beyond automobiles.
Earnings Outlook
According to FactSet:
- Q4 revenue is projected to decline by 3%
- Earnings per share are expected to drop by nearly 40%
However, analysts are cautiously optimistic that Tesla’s sales may rebound later in 2026 as new models and services begin to scale.
Shareholder Confidence Remains Strong
In November, Tesla shareholders approved a new massive pay package for Musk, betting on his ability to reinvent the company and launch new revenue streams. Just weeks later, Musk received another financial boost when the Delaware Supreme Court overturned a previous ruling that had denied him access to a controversial $55 billion pay deal from 2018.
Musk’s Personal Fortune Soars
While Tesla’s stockholders weathered a bumpy 2025, Elon Musk’s personal fortune grew significantly:
- Forbes projects Musk could become the world’s first trillionaire if SpaceX — his private aerospace company — goes public as expected in late 2026
- SpaceX’s IPO is widely anticipated to be one of the largest in history
The Bottom Line
Tesla’s status as a dominant force in electric vehicles has been shaken. With falling sales, increasing competition, and political controversies surrounding its CEO, the company faces real challenges ahead. However, with Musk’s attention shifting toward robotics, autonomous driving, and energy tech, investors continue to bet on Tesla’s long-term potential — even if it means enduring more turbulence in the short term.
You must Register or Login to post a comment.