Due to a consumer backlash against Elon Musk’s right-wing views and fierce international competition, Tesla lost its position as the world’s best-selling electric car manufacturer on Friday. This was the company’s second consecutive year of declining sales.
Tesla vs BYD 2025: Global EV Rankings Shake Up
According to Tesla, it delivered 1.64 million cars in 2025, a 9% decrease from the previous year. The largest EV manufacturer is now Chinese competitor BYD, which sold 2.26 million cars last year.
Sales for the fourth quarter came in at 418,227, less than the 440,000 that FactSet surveyed analysts had anticipated. The Trump administration’s phase-out of a $7,500 tax credit at the end of September had an effect on the sales total. At $450.27 in early trading on Friday, Tesla’s shares remained almost unchanged.
Investor Expectations & Elon Musk Robotaxi Plans
Investors are hoping that Tesla CEO Musk will fulfill his goals of making Tesla a leader in robotaxi services and persuading customers to accept humanoid robots that can carry out routine jobs in homes and businesses, despite the company’s many problems. The stock ended 2025 with a gain of almost 11%, reflecting that confidence.
🚗 Tesla Model 3 Price Cut & BYD EV Sales Record
- Announcement: Musk revealed stripped-down Model Y & Model 3 in early October
- Model 3 Price: Under $37,000
- Model Y Price: Slightly below $40,000
- Purpose: Compete with BYD EV sales record & boost global sales
- Regions: Europe & Asia expected to see major adoption
In an attempt to boost sales, Musk announced stripped-down versions of the Model Y and Model 3 in early October, and the most recent quarter saw the first sales of these vehicles. Customers may purchase the less expensive Model 3 for less than $37,000, while the new Model Y costs little less than $40,000. In Europe and Asia, such models should help Tesla compete with Chinese competitors.
Revenue & Profit Declines Expected
According to FactSet, analysts anticipate that the business will report a 3% decline in revenue and a roughly 40% decline in profits per share for its fourth-quarter results, which are due out in late January. As 2026 progresses, analysts anticipate that the declining trend in sales and profitability will finally reverse itself.
Investors have mostly ignored the declining numbers in favor of concentrating on Musk’s shift to other areas of the company.
🤖 Elon Musk Robotaxi & Home Robot Plans
- Focus Areas: Robots for home & factory use
- Autonomous Robotaxis: New urban mobility service
- Energy Storage: Expansion of Tesla’s energy business
- Shareholder Approval: Massive compensation package to incentivize Musk
- Long-Term Outlook: Analysts watching Tesla’s competitiveness & recovery
He has been arguing that the company’s future is more focused on developing robots for the home and factory, the company’s energy storage business, and his new autonomous robotaxis service. At the November annual meeting, shareholders supported the potentially massive new compensation package that Tesla’s board gave Musk to make his work worthwhile.
Elon Musk Wealth & Updated BYD Data
Two weeks ago, the Delaware Supreme Court overturned a ruling that denied Musk a $55 billion compensation package that Tesla had given him in 2018, giving him yet another enormous windfall. Musk is now the wealthiest man in the world. This report has been updated to reflect that BYD sold 2.26 million cars last year, not 2.26 million.
Frequently asked questions
Q: Why did Tesla lose its #1 EV spot?
A: Tesla’s deliveries fell 9% in 2025 due to political backlash, competition, and tax credit expiration.
Q: How many EVs did BYD sell in 2025?
A: BYD sold 2.26 million vehicles, surpassing Tesla’s 1.64 million.
Q: What is Elon Musk focusing on next?
A: Robotaxi services, humanoid robots, and energy storage.
