Tesla Loses Top EV Seller Title to BYD Amid Sales Decline
Tesla's vehicle deliveries in 2025 decreased, resulting in the company losing its position as the world's leading electric vehicle (EV) manufacturer. Chinese competitor BYD has now surpassed Tesla in sales volume.
Sales Performance
Tesla reported delivering 1.64 million vehicles in 2025, a 9 percent reduction from the previous year. In contrast, BYD sold 2.26 million vehicles during the same period, making it the largest EV producer by sales.
Factors Influencing Sales
The expiration of a $7,500 ($11,200 AUD) US federal tax credit for EV purchases in late September impacted Tesla's sales. In response, Tesla introduced lower-priced versions of its Model Y and Model 3 in early October. The new Model Y is priced at just under $40,000 USD, while the Model 3 is available for under $37,000 USD. These models are intended to enhance Tesla's competitive stance against Chinese manufacturers in European and Asian markets.
Stock Performance and Future Initiatives
Tesla's stock experienced a nearly 3 percent decline, closing at $436.85 USD in afternoon trading on a recent Friday. However, the stock concluded 2025 with an overall gain of approximately 11 percent. This gain was influenced by investor anticipation regarding Tesla's robotaxi service ambitions.
Tesla initiated its robotaxi service in Austin earlier this year, initially with safety monitors present, followed by testing without them. The company aims to expand this service to additional cities within the year.
Regulatory challenges are anticipated for the rollout of such services, as noted by Wedbush Securities analyst Dan Ives. Tesla is currently under several federal safety investigations and other probes. In California, the company faces the potential temporary suspension of its license to sell vehicles following a judicial ruling that indicated misleading information provided to customers regarding vehicle safety.
CEO Elon Musk has stated expectations that software updates will enable hundreds of thousands of Tesla vehicles to operate autonomously without human intervention by the end of this year. Additionally, production of the AI-powered Cybercab, designed without a steering wheel or pedals, is projected to commence in 2026.
Executive Compensation
Tesla's board of directors awarded Elon Musk a new pay package, which shareholders approved at the annual meeting in November. Musk may achieve the status of the world's first trillionaire later this year, contingent on the public offering of shares in his aerospace company, SpaceX.