Tesla’s dominance as the top-selling electric vehicle (EV) manufacturer has been challenged due to a decline in sales for the second consecutive year, influenced by customer dissatisfaction with Elon Musk’s political stance and increased competition abroad. In 2025, Tesla reported a delivery of 1.64 million vehicles, marking a nine percent decrease from the previous year, while Chinese competitor BYD surpassed Tesla by selling 2.26 million EVs.
In the fourth quarter, Tesla’s sales reached 418,227 vehicles, falling short of the 440,000 anticipated by analysts. This decline could be attributed to the conclusion of a $7,500 US tax credit phased out by the Trump administration in September. Despite facing various challenges, Tesla’s stock showed an approximate 11 percent increase in 2025, buoyed by investor optimism in CEO Elon Musk’s vision to position Tesla as a leader in the robotaxi service sector and introduce humanoid robots for household and office tasks.
Tesla’s shares experienced a nearly two percent rise before the market opened on Friday, reflecting continued investor interest in the company’s future prospects.
