Khaberni - Tesla lost today, Friday, the throne of electric car manufacturing in the world to the Chinese company BYD, after a decline in its annual sales for the second consecutive year, influenced by increasing competition and the expiration of U.S. tax exemptions, in addition to negative reactions towards the brand.
With a rise in global electric car sales of 28 percent last year, BYD's sales exceeded Tesla's for the first time on an annual basis, supported by rapid growth in Europe, where the Chinese company widened the gap with its American competitor.
Tesla, which saw its sales drop by about 8.6 percent in 2025, faces fierce competition, especially in Europe, raising questions about the company's ability to revive its core business in the car market, as its CEO Elon Musk shifts towards self-driving taxis and humanoid robots.
The company's stock fell by more than one percent in morning trading.
Dennis Dick, a trader at Triple D Trading who owns shares in Tesla said, "Investors are so focused on Tesla's future that they are ignoring sales. It's about (the robot) Optimus, self-driving taxis, and physical artificial intelligence."
Tesla's fourth-quarter figures came after third-quarter deliveries were bolstered by a rush to benefit from federal tax incentives of $7,500 on electric vehicles, following President Donald Trump's administration's decision to cancel this incentive in September.
Tesla said it delivered 418,227 vehicles between October and December, down 15.6 percent compared to 495,570 vehicles in the same period last year. Visible Alpha analysts had predicted 434,487 deliveries, a decrease of 12.3 percent.
Tesla delivered 1.64 million vehicles throughout the year, compared to 1.79 million vehicles in 2024. Analysts surveyed by Visible Alpha had expected Tesla to deliver about 1.65 million vehicles, registering the company's second consecutive annual decline.
The increasing competition from Chinese and European car manufacturers, such as BYD, Volkswagen, and BMW, negatively impacted Tesla's sales momentum.
BYD said its sales outside China jumped to a record level of one million vehicles in 2025, an increase of about 150 percent from 2024.
