Tesla Loses Title as World’s Top EV Seller After Sales Fall Again

Tesla has lost its position as the world’s bestselling electric vehicle manufacturer after another year of declining sales, weighed down by growing competition and concerns surrounding the political activities of its chief executive, Elon Musk.

The US-based automaker said it delivered 1.64 million vehicles in 2025, representing a 9% drop compared with the previous year and marking its second consecutive annual decline in sales.

China’s BYD has now overtaken Tesla as the global leader in electric vehicle sales, after delivering 2.26 million vehicles in 2025.

Tesla’s performance in the final quarter of the year also disappointed analysts. The company delivered 418,227 vehicles between October and December, falling short of the 440,000 units expected by market analysts.

Analysts said sales may have been affected by the end of a $7,500 (£5,500) federal tax credit for electric vehicles, which was phased out by the Trump administration at the end of September.

Despite the weaker sales figures, Tesla’s shares ended 2025 up by about 11%. Investors remain optimistic about Musk’s long-term vision, including plans to expand robotaxi services and develop humanoid robots capable of performing basic tasks in homes and workplaces.

The company, however, faces increasing pressure as global rivals, particularly Chinese manufacturers, continue to expand their presence in the fast-growing electric vehicle market.