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The American company, led by Elon Musk, delivered 418,227 vehicles in the final quarter, bringing its total annual sales to approximately 1.64 million EVs. This represents a drop of more than 8% compared with 2024.
A day earlier, BYD announced it sold 2.26 million EVs in 2025, surpassing Tesla. Analysts had expected Tesla’s fourth-quarter deliveries to reach 449,000, according to a FactSet consensus.
The sales pullback comes after the $7,500 US EV tax credit ended in September 2025. Industry experts note it will take time for demand to adjust.
Tesla also faced challenges in key markets due to CEO Elon Musk’s political support for US President Donald Trump and other far-right figures. Rising competition from BYD, other Chinese automakers, and European EV giants added pressure.
Founded in 1995, BYD — also known as “Build Your Dreams” — initially specialized in battery manufacturing. The company now dominates China’s new energy vehicle market, which includes fully electric and plug-in hybrid vehicles.
With domestic demand slowing, BYD is expanding overseas, targeting Southeast Asia, the Middle East, and Europe, despite high US tariffs.
Tesla had narrowly outpaced BYD in 2024, with 1.79 million vehicles sold compared to BYD’s 1.76 million. Despite the 2025 decline, Tesla shares ticked up in pre-market trading in New York.
Dan Ives of Wedbush Securities noted Tesla’s quarterly results were better than expected but highlighted challenges in Europe and key markets. He added that emerging and smaller markets could offset declines in major regions.
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