Tesla has reported weaker-than-expected vehicle sales for the fourth quarter of 2025, losing its long-held position as the world’s largest electric vehicle maker by annual sales to China’s BYD.
The Elon Musk-led company delivered 418,227 vehicles in the final three months of the year, bringing its total EV sales for 2025 to about 1.64 million units. The figure fell short of analysts’ expectations, which had projected roughly 449,000 deliveries for the quarter.
In contrast, Shenzhen-based BYD announced a total of 2.26 million electric vehicles sold in 2025, marking a decisive lead over its American rival. The Chinese automaker, which also manufactures hybrid vehicles, recorded record-breaking sales as it expanded aggressively into overseas markets.
Analysts say Tesla’s slowdown reflects broader adjustments in the US electric vehicle market following the removal of a $7,500 federal tax credit at the end of September 2025, a move that has dampened consumer demand. However, industry observers note that Tesla’s challenges began earlier, with sales weakening in some markets amid controversy surrounding Musk’s political positions.
Rising competition from Chinese manufacturers such as BYD, alongside pressure from established European automakers, has further intensified the battle for dominance in the global EV sector. As BYD’s revenue surpasses the $100 billion mark, the shift underscores changing dynamics in the rapidly evolving electric vehicle market.