Chinese automaker BYD sold 2.26 million vehicles in 2025, surpassing Tesla, which delivered 1.64 million, to become the world’s largest electric vehicle manufacturer. Tesla’s sales fell 9% from 2024, marking its second consecutive year of decline.
Tesla’s fourth-quarter deliveries totaled 418,227 vehicles, below analysts’ estimate of about 440,000 units. The company faced reduced demand after the U.S. federal $7,500 EV tax credit expired.
Tesla introduced lower-cost Model Y and Model 3 versions in October, priced just below $40,000 and under $37,000, targeting competition with lower-priced Chinese vehicles in Europe and Asia. Analysts expect Tesla’s upcoming quarterly sales to drop 3% and earnings per share to fall nearly 40%, with gradual recovery projected in 2026.
Tesla also launched a robotaxi service in Austin, U.S., and plans to expand to other cities, alongside producing a steering-wheel-free Cybercab in 2026. The company is under multiple federal safety investigations and could face temporary restrictions on sales in California.
Tesla shares fell 2.6% to $438.07 on Friday but ended 2025 up roughly 11%. In November, the company approved a new compensation package for Elon Musk, and the Delaware Supreme Court reinstated a $55 billion pay award from 2018.
Asia Pacific Newslog 