Global deliveries fall as competition intensifies
Tesla has lost its position as the world’s bestselling electric vehicle maker after reporting a second consecutive annual decline in sales. The company said it delivered 1.64 million vehicles in 2025, representing a 9% decrease compared with the previous year.
The drop comes amid growing overseas competition and a backlash from some customers linked to the political views of chief executive Elon Musk.
BYD becomes the world’s largest EV manufacturer
Chinese automaker BYD has overtaken Tesla to become the world’s biggest electric vehicle producer. The company sold 2.26 million vehicles in 2025, surpassing Tesla’s annual deliveries by a wide margin.
The shift highlights the increasing strength of Chinese manufacturers in the global EV market and the pressure facing established players.
Quarterly sales miss market expectations
In the fourth quarter, Tesla delivered 418,227 vehicles, below the 440,000 units expected by analysts surveyed by FactSet. The weaker performance may have been affected by the expiration of a $7,500 US tax credit, which was phased out at the end of September.
The removal of the incentive reduced price support for buyers during a key period for vehicle sales.
Shares rise despite operational challenges
Despite the decline in deliveries, Tesla shares ended 2025 with a gain of roughly 11%. Investors continue to focus on the company’s longer-term ambitions, including plans to develop a robotaxi service and expand into humanoid robots designed to perform basic tasks in homes and offices.
On Friday, Tesla shares rose nearly 2% in premarket trading.
