British News Agency

After reporting deliveries of 1.64 million vehicles in 2025, Tesla lost its leadership to Chinese rival BYD by delivering about 620,000 fewer vehicles.

Chinese rival BYD, which sold 2.26 million vehicles last year, has now taken the title of the world’s largest electric vehicle manufacturer.

Tesla faced challenges last year due to increased competition, declining federal support for electric vehicle adoption, and fire damage that occurred during Musk’s tenure at the White House.

As the popularity of electric vehicles declines, Musk is focusing on robotics and autonomous driving technology to keep Tesla up to date.

The company reported lower-than-expected delivery figures for the fourth quarter of 2025 on Friday, marking a decline from the previous quarter and a 16% year-on-year drop. Tesla delivered 418,227 vehicles and produced 434,358 in the fourth quarter.

According to an analyst consensus published on Tesla’s website in December, the company was expected to deliver around 423,000 vehicles in the fourth quarter.

iSeeCars.com analyst Karl Brauer said: “A number of factors are at play, from a lack of evolution and real innovation in Musk’s product to the loss of electric vehicle credits. Teslas are starting to look dated. You have many other options, and all of them look newer and fresher.”

Brauer added that BYD produces affordable premium electric vehicles, but high tariffs on Chinese electric vehicles effectively prevent them from gaining popularity in the United States.

Other international automakers such as South Korea’s Hyundai and Germany’s Volkswagen are also expanding their electric vehicle offerings.

In the third quarter of last year, U.S. automaker Ford sold a record number of electric vehicles, helped by the popular Mustang Mach-E SUV and F-150 Lightning pickup.