By John Meyer, consultant in business – Eurasia Business News, January 2, 2025. Article no. 1962
Tesla’s global vehicle deliveries fell for the second year in a row in 2025, and China’s BYD has now overtaken Tesla as the world’s largest electric-vehicle maker.
What happened in 2025
Tesla delivered about 1.64 million vehicles in 2025, down roughly 9% from 2024 and below its 2023 peak, marking a second consecutive annual decline.
BYD sold about 2.26 million electric vehicles in 2025, putting it clearly ahead of Tesla in global EV sales for the first time on a full‑year basis.
Why Tesla’s sales are dropping
The phaseout of a U.S. federal EV tax credit of about 7,500 dollars removed a major purchase incentive and hurt Tesla more than many rivals because of its high U.S. exposure.
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Weaker demand in Europe and intensifying price competition from Chinese manufacturers, especially BYD, have pressured Tesla’s volumes and margins.
Tesla’s third-quarter 2025 earnings report had already showed a sharp decline in profit despite a rush of purchases driven by U.S. consumers eager to benefit from an expiring federal tax credit for electric vehicles.
Other contributing factors
Elon Musk’s prominent right‑leaning political stance has triggered a consumer backlash among some buyers, which several reports link to softer demand for Tesla vehicles.
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Tesla’s core lineup (especially the Model 3 and Model Y) has seen limited major updates, while competitors are rolling out newer models and undercutting Tesla on price in key markets.
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© Copyright 2025 – Eurasia Business News. Article no. 1962
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