New York (AP) – Tesla lost its crown as the world’s bestselling electric vehicle maker on Friday as a customer revolt over Elon Musk’s right-wing politics, expiring US tax breaks for buyers and stiff overseas competition pushed sales down for a second year in a row.
Tesla said that it delivered 1.64 million vehicles in 2025, down 9 per cent from a year earlier.
Chief executive Elon Musk once dismissed Chinese rival BYD as a threat as Tesla’s rise seemed unstoppable.Credit: Bloomberg
Chinese rival BYD, which sold 2.26 million vehicles last year, is now the biggest EV maker.
It’s a stunning reversal for Musk who once dismissed BYD as a threat as Tesla’s rise seemed unstoppable, crushing traditional automakers with far more resources and helping make him the world’s richest man.
For the fourth quarter, sales totalled 418,227, falling short of the 440,000 that analysts polled by FactSet expected. The sales total was impacted by the expiration of a $7500 tax credit that was phased out by the Trump administration at the end of September.
Tesla stock was up 0.5 per cent at $451.60 in early trading Friday.
Tesla Model 3 vehicles pictured in October at the company’s store in Vallejo, California. Credit: Bloomberg
Even with multiple issues buffeting the company, investors are betting that Tesla chief executive Musk can deliver on his ambitions to make Tesla a leader in robotaxi service and get consumers to embrace humanoid robots that can perform basic tasks in homes and offices. Reflecting that optimism, the stock finished 2025 with a gain of approximately 11 per cent.
The latest quarter was the first with sales of stripped-down versions of the Model Y and Model 3 that Musk unveiled in early October as part of an effort to revive sales. The new Model Y costs just under $US40,000 ($60,000) while customers can buy the cheaper Model 3 for under $US37,000. Those versions are expected to help Tesla compete with Chinese models in Europe and Asia.
