Tesla Faces Decline in Sales, Losing Its Title as the Leading EV Maker
Tesla's Sales Struggle
Tesla has encountered a notable downturn in electric vehicle sales, leading to its loss of the title as the world's biggest EV maker. In 2025, the company delivered 1.64 million vehicles, reflecting a 9% decline from 2024's 1.79 million. The situation worsened in the fourth quarter, with sales plummeting by 15.6% to 418,227 vehicles, significantly lower than the anticipated 440,000 units.
Factors Behind the Decline
- Phaseout of the $7,500 EV tax credit has diminished consumer incentives, impacting demand.
- Increased competition from rivals like BYD, which boasts sales of 2.26 million vehicles.
- Consumer backlash against CEO Elon Musk's political involvement.
Future Prospects
Despite significant challenges, Tesla's stock showed resilience, closing 2025 with an 11% gain. Investors remain optimistic about Musk's plans to spearhead innovations in robotaxi services and humanoid robotics.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.