Tesla loses title as world’s biggest electric vehicle maker

3 1 minute read

Tesla Loses Title as World’s Top EV Maker Amidst Sales Decline

New York (AP) – In a surprising turn of events, Tesla has been dethroned as the world’s leading electric vehicle manufacturer, facing a decline in sales for the second consecutive year. This setback comes amidst a customer backlash over Elon Musk’s right-wing political views and increased competition from overseas rivals.

Tesla reported a delivery of 1.64 million vehicles in 2025, marking a 9% decrease from the previous year. Chinese competitor BYD has now emerged as the largest EV maker, selling 2.26 million vehicles in the same year.

The fourth-quarter sales totaled 418,227, falling short of analysts’ expectations of 440,000. This drop was partly attributed to the expiration of a $7,500 tax credit phased out by the Trump administration in September.

Despite these challenges, Tesla stock remained stable at $450.27 in early trading on Friday. Investors remain optimistic about CEO Musk’s vision to establish Tesla as a leader in robotaxi service and introduce humanoid robots for various tasks in homes and offices.

The latest quarter saw the introduction of stripped-down versions of Model Y and Model 3, aimed at boosting sales and competing with Chinese models in global markets. Analysts predict a slight decline in sales and a significant drop in earnings per share for the upcoming quarterly earnings report in January.

While sales figures may be declining, investors are focusing on Musk’s diversification strategy, including the development of driverless robotaxis and expansion into energy storage solutions. Tesla’s directors recently approved a lucrative new pay package for Musk, underscoring their confidence in his long-term vision for the company.

Despite recent setbacks, Musk’s net worth has continued to soar, with a recent legal victory securing him a substantial $55 billion pay package from Tesla. As 2026 unfolds, analysts anticipate a reversal of the downward sales trend, driven by Tesla’s innovative ventures beyond traditional car manufacturing.