NEW YORK — Tesla has relinquished its title as the world’s best-selling electric vehicle (EV) manufacturer as global competition, expiring U.S. tax incentives, and political controversies surrounding CEO Elon Musk contributed to a second consecutive year of declining sales.
The company delivered 1.64 million vehicles in 2025, down 9% from 2024. Chinese rival BYD, which sold 2.26 million vehicles last year, now leads the global EV market.
The sales slump marks a striking reversal for Tesla, which once overtook legacy automakers with larger resources and helped cement Musk’s status as the world’s richest person. Sales were further affected by the phase-out of a $7,500 U.S. tax credit for EV buyers at the end of September 2025.
For the fourth quarter, Tesla reported deliveries of 418,227 vehicles, below analysts’ revised target of 440,000, according to FactSet. Tesla shares fell 2.6% to $438.07 on Friday, although the stock ended the year up roughly 11% as investors continue to bet on Musk’s long-term vision.
To revive sales, Tesla introduced more affordable versions of the Model Y and Model 3 in October. The stripped-down Model Y is priced just under $40,000, while the new Model 3 costs under $37,000. Analysts expect these models to improve Tesla’s competitiveness in China and Europe.
Despite declining vehicle sales, Musk has shifted focus to autonomous driving, robotaxis, and AI-powered robots for homes and factories. Tesla began limited robotaxi operations in Austin in June, initially with safety monitors and later testing without them. The company plans to expand the service to multiple cities in 2026, competing with established players like Waymo and navigating regulatory challenges.
Tesla remains under several federal safety investigations, and in California, the company risks a temporary suspension of its license to sell vehicles after a judge ruled it had misled customers about safety features. “Regulatory is going to be a big issue,” said Wedbush Securities analyst Dan Ives. “We’re dealing with people’s lives.”
Musk aims to enable hundreds of thousands of Tesla vehicles to operate autonomously by the end of 2026 and plans to launch production of the AI-powered Cybercab without a steering wheel or pedals. To retain Musk’s focus, Tesla’s board approved a potentially massive new pay package in November, recently upheld by the Delaware Supreme Court, reversing a previous decision that had denied a $55 billion award.
With Musk also preparing to take SpaceX public later this year, analysts speculate he could become the world’s first trillionaire.
Tesla loses title as world’s biggest electric vehicle maker as sales fall for second year in a row.
Si Venus L Peñaflor ay naging editor-in-chief ng Newsworld, isang lokal na pahayagan ng Laguna. Publisher din siya ng Daystar Gazette at Tutubi News Magazine. Siya ay isa ring pintor at doll face designer ng Ninay Dolls, ang unang Manikang Pilipino. Kasali siya sa DesignCrowd sa rank na #305 sa 640,000 graphic designers sa buong daigdig. Kasama din siya sa unang Local TV Broadcast sa Laguna na Beyond Manila. Aktibong kasapi siya ng San Pablo Jaycees Senate bilang isang JCI Senator.
- Venus L Peñaflor
- Venus L Peñaflor
- Venus L Peñaflor
- Venus L Peñaflor
