Tesla annual sales decline 9% as it’s overtaken by BYD as global EV leader

Tesla yearly income person fallen for the 2nd twelvemonth successful a row, a driblet fueled by the removal of the national taxation recognition successful the U.S. and contention from Chinese automakers.

Tesla delivered 1.63 cardinal vehicles globally successful 2025, a 9% autumn from 1.79 cardinal successful 2024, according to figures released by the company. Notably, astir 50,850 of those vehicles are considered “other models,” a postulation that includes the Cybertruck arsenic good arsenic its older Model X and Model S.

Tesla reported fourth-quarter income of 418,227, a 15.6% driblet from the aforesaid play past twelvemonth and acold much than analysts expected. Tesla banal fell much than 2% arsenic the marketplace opened aft the New Year holiday.

Tesla, erstwhile the planetary EV income leader, has seen its marketplace stock successful Europe and China eroded by the emergence of Chinese competitors. China’s BYD, which delivered 2.26 cardinal EVs successful 2025, has present taken the apical planetary EV income spot. Tesla is besides facing much contention successful the United States — though notably not from Chinese automakers which are barred from selling vehicles successful the country.

But it was the elimination of the $7,500 U.S. national taxation inducement that seems to person delivered the biggest stroke successful the 4th quarter. Tesla sold a record-breaking 497,099 vehicles successful the 3rd 4th — a 29% summation from erstwhile 4th — arsenic consumers raced to bargain EVs earlier the national EV taxation recognition disappeared. Since then, income person retreated successful spite of efforts to woo buyers.

Tesla’s declining income comes arsenic CEO Elon Musk tries to pivot the institution distant from the concern of making and selling EVs and towards AI and robotics. Musk’s transportation is determination is wealth to beryllium made successful “sustainable abundance,” a catchphrase utilized passim the company’s caller Master Plan IV that describes an ecosystem of sustainable products, from transport to vigor generation, artillery retention and robotics.

And yet, the bulk of Tesla’s income comes from its EV business. For instance, Tesla generated $28 cardinal successful gross successful the 3rd quarter, of which $21.2 cardinal came from selling EVs.