"Tesla annual sales have fallen for the second year in a row, a drop fueled by the removal of the federal tax credit in the U.S. and competition from Chinese automakers. Tesla delivered 1.63 million vehicles globally in 2025, a 9% fall from 1.79 million in 2024, according to figures released by the company. Notably, about 50,850 of those vehicles are considered "other models," a collection that includes the Cybertruck as well as its older Model X and Model S."
"Tesla reported fourth-quarter sales of 418,227, a 15.6% drop from the same period last year and far more than analysts expected. Tesla stock fell more than 2% as the market opened after the New Year holiday. Tesla, once the global EV sales leader, has seen its market share in Europe and China eroded by the rise of Chinese competitors. China's BYD, which delivered 2.26 million EVs in 2025, has now taken the top global EV sales spot."
"But it was the elimination of the $7,500 U.S. federal tax incentive that seems to have delivered the biggest blow in the fourth quarter. Tesla sold a record-breaking 497,099 vehicles in the third quarter - a 29% increase from previous quarter - as consumers raced to buy EVs before the federal EV tax credit disappeared. Since then, sales have retreated in spite of efforts to woo buyers."
Tesla delivered 1.63 million vehicles globally in 2025, a 9% decline from 1.79 million in 2024. About 50,850 of those deliveries are categorized as "other models," including the Cybertruck, Model X, and Model S. Fourth-quarter deliveries totaled 418,227, a 15.6% year-over-year decline, prompting a more than 2% drop in stock at market open. Chinese automakers have eroded Tesla's market share in Europe and China, with BYD delivering 2.26 million EVs in 2025 and becoming the top global EV seller. The removal of the $7,500 U.S. federal tax incentive drove a third-quarter buying surge, after which sales fell. CEO Elon Musk is shifting emphasis toward AI, robotics, and a sustainable-products ecosystem despite EVs remaining the company's primary income source.
Read at TechCrunch
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