Tesla loses place as world's top electric vehicle seller to China's BYD

"Tesla has lost its place as the top global seller of electric vehicles to Chinese company BYD, capping a year defined by outrage over CEO Elon Musk's political manoeuvring and the end of United States tax breaks for customers. The company revealed on Friday that it had sold 1.64 million vehicles in 2025, compared with BYD's 2.26 million vehicles. The sales represented a 9 percent decline for Tesla from a year earlier."

"Musk's embrace of US President Donald Trump in 2024 and subsequent spearheading of a controversial government efficiency panel (DOGE) behind widespread layoffs of federal workers has also proved polarising. The political foray prompted protests at Tesla facilities and slumps in sales. The company's fourth quarter sales totaled 418,227, falling short of the much-reduced 440,000 target that analysts recently polled by FactSet, an investment research firm, had expected."

"Tesla was also hard hit by the expiration of a $7,500 tax credit for electric vehicle purchases that was phased out by the Trump administration at the end of September. Trump's opposition to electric vehicles has contributed to a strained relationship with Musk. Despite the downward trends in sales, investors have generally remained optimistic about Tesla and Musk's ambitious plans to make the company a leader in driverless robotaxi services and humanoid robots for homes. Reflecting that optimism, Tesla stock finished 2025 up about 11 percent."

Tesla sold 1.64 million vehicles in 2025, a nine percent decrease from the prior year, while BYD sold 2.26 million vehicles to become the top global EV seller. Competition increased as China’s EV market expanded and rivals crowded the sector. CEO Elon Musk's public support for U.S. President Donald Trump in 2024 and leadership of a controversial government efficiency panel (DOGE) led to protests at Tesla facilities, polarisation, and sales slumps; Musk left DOGE in May. Tesla's fourth-quarter sales were 418,227, below a 440,000 analyst target. A phased-out $7,500 U.S. tax credit further reduced demand. Investors remain optimistic about driverless robotaxi and humanoid-robot ambitions, and Tesla stock rose about 11 percent in 2025.

Read at www.aljazeera.com