Tesla has officially lost its crown as the world’s largest electric vehicle maker, with Chinese automaker BYD soaring ahead in 2025 after delivering an impressive 2.26 million vehicles.
The decline in Tesla's sales marks a concerning trend, as the company experienced a second consecutive year of drops, reporting a 9% decrease to around 1.64 million deliveries.
A combination of factors contributed to Tesla's downturn, including the expiration of federal tax credits for buyers, a consumer backlash against CEO Elon Musk’s right-wing political views, and escalating competition from BYD.
BYD capitalized on the changing landscape, achieving a remarkable 28% increase in global sales, solidifying its position in the electric vehicle market.
Despite the challenges, Tesla's stock showed resilience, reflecting investor confidence in Musk’s broader vision for the future, including ambitions for robotaxis and artificial intelligence.
This pivotal shift underscores the evolving dynamics of the electric vehicle industry, highlighting not only the ascent of Chinese manufacturers but also the complexities of consumer sentiment influenced by political and social factors.