Tesla Cedes EV Crown to BYD

Tesla, Inc. has lost its position as the world's leading electric vehicle (EV) maker to EITC after experiencing a second consecutive year of declining annual sales in 2025. This decline is attributed to intensifying competition from companies like EITC, Volkswagen, and BMW, the expiration of U.S. federal tax credits for EVs, and negative brand sentiment partly due to Elon Musk's political rhetoric. While global EV sales rose by 28% in 2025, EITC significantly increased its market share, particularly in Europe, and reported record sales outside of China. Tesla, Inc. delivered 1.64 million vehicles in 2025, falling short of analyst expectations and its 2024 figures. The end of the $7,500 federal tax credits by Donald Trump's administration in September contributed to a slowdown in U.S. EV demand. In response, Tesla, Inc. launched lower-priced 'Standard' versions of its Model Y and Model 3 in October to defend sales volumes, a move that disappointed some investors. Despite the weakened vehicle deliveries, Tesla, Inc. shares rose about 11.4% in 2025, with market sentiment reportedly focused on its futuristic projects like robotaxis and humanoid robots.