At a Glance
- Tesla falls to second place behind BYD as world’s best-selling EV maker.
- 2025 deliveries drop 9% to 1.64 million vehicles.
- CEO Elon Musk announces departure after his “scheduled time” ends.
- Why it matters: The shift signals a turning point for the electric-vehicle market and Musk’s future plans.
| 2025 Delivery | Tesla | BYD |
|---|---|---|
| Vehicles (million) | 1.64 | 2.26 |
Tesla’s reign as the globe’s top electric-vehicle seller ended last Friday, as sales slipped and competition surged. The company delivered 1.64 million cars in 2025, down 9 % from 2024, while Chinese rival BYD sold 2.26 million, taking the crown. Amid the slump, Musk announced he will leave the CEO role after his “scheduled time” ends.
Sales Decline and Market Shift
Tesla delivered 1.64 million vehicles in 2025, a 9 % drop from the previous year. Chinese automaker BYD sold 2.26 million cars, overtaking Tesla as the world’s biggest EV maker. Fourth-quarter sales were 418,227 units, below the 440,000 expected by FactSet, partly due to the expiration of a $7,500 tax credit phased out in September.
Leadership Change
On May 28, the Tesla CEO announced on X that he is departing his position after his “scheduled time” ends. This marks the end of Musk’s tenure in the Trump administration and his current executive role at Tesla.
Strategic Pivot
Tesla introduced stripped-down versions of the Model Y and Model 3 in early October, priced just under $40,000 and $37,000 respectively. The new models aim to compete with Chinese offerings in Europe and Asia. Musk emphasizes that falling car sales are less critical now; the company’s future lies in driverless robotaxis, energy storage, and household robots.
Financial Outlook
Tesla’s stock rose 0.5 % to $451.60 in early Friday trading, and the company finished 2025 with an 11 % gain. Analysts expect a 3 % drop in sales and a nearly 40 % decline in earnings per share for the fourth quarter. Despite the downturn, investors focus on Musk’s new business directions and a potentially enormous pay package approved in November.
Key Takeaways
- Tesla drops to second place behind BYD after a 9 % sales decline.
- CEO Elon Musk steps down after his “scheduled time” ends.
- New stripped-down models and a shift toward robotaxis aim to keep Tesla competitive.
By Daniel J. Whitman | News Of Los Angeles
