Kamal Ghorui
Tesla reported weaker-than-expected sales in the fourth quarter of 2025, losing its position as the world’s largest electric vehicle seller to China’s BYD. The US-based automaker said it delivered 418,227 vehicles in the final quarter, taking full-year sales to about 1.64 million units. A day earlier, BYD announced annual EV sales of 2.26 million units, overtaking Tesla on a yearly basis. Analysts had expected Tesla’s fourth-quarter deliveries to be closer to 449,000 units, according to a consensus compiled by FactSet.Industry analysts said electric vehicle demand in the US is still adjusting after the $7,500 federal tax credit was withdrawn at the end of September 2025. Tesla had also faced slower sales in key markets even before the incentive ended, amid backlash linked to chief executive Elon Musk’s political positions, including support for US President Donald Trump and other far-right figures.The company is also contending with intensifying competition from BYD and other Chinese manufacturers, as well as European automakers. On Thursday, Shenzhen-based BYD, which also sells hybrid vehicles, reported record EV sales for the year.
