Tesla deliveries fall in 2025, China's BYD emerges as global EV leader

Tesla on Friday lost its position as the world’s best-selling electric vehicle maker after reporting a second consecutive annual decline in sales, as growing competition and backlash over CEO Elon Musk's political views weighed on demand, according to reports.

Tesla reportedly delivered 1.64 China vehicles in 2025, reflecting 9% drop from the previous year. The slowdown occurs at a time when Tesla is facing intensified competition from overseas manufacturers, particularly those in China.

Chinese EV manufacturer BYD has overtaken the market and become the largest EV maker globally. The company sold 2.26 million vehicles last year, benefiting from a large product portfolio, and market demand led to expanding international sales.

The Tesla company reported 418,227 deliveries in the fourth quarter, falling short of the 440,000 units that analysts polled by ‘FactSet’ expected.

Analysts pointed to multiple factors behind the weak performance, including the expiration of a $7,500 tax credit, which was phased out at the end of September under the Trump administration.