Tesla sales slip as it loses EV crown to China’s BYD in 2025

The American company led by Elon Musk logged 418,227 deliveries in the final three months of the year, taking its full-year sales figure to around 1.64 million EVs.

A day prior, BYD reported that it sold 2.26 million EVs last year.

Analysts had expected Tesla’s sales in the final quarter to slow less, to 449,000, according to a FactSet consensus.

Industry watchers have noted that it will take time for EV demand to reach a level of equilibrium in the United States after the elimination of a $7,500 US tax credit at the end of September 2025.

But even before that, Tesla had seen sales struggle in key markets over CEO Musk’s political support of US President Donald Trump and other far-right politicians.

Tesla has also been grappling with rising competition from BYD and other Chinese companies, and from European giants. On Thursday, Shenzhen-based BYD, which also produces hybrid cars, unveiled record EV sales in the past year.