Tesla has lost the crown of the world's largest electric car manufacturer to the Chinese company BYD in 2025, after recording the second year in a row of declining vehicle sales, writes the FT. The group led by Elon Musk delivered 1.64 million fully electric vehicles last year, down 9 percent from 1.79 million delivered in 2024, the company said on Friday, amid fierce competition and the elimination of US tax credits for the purchase of electric vehicles. BYD announced this week that it has sold 2.26 million «pure» electric vehicles in 2025, up 28 percent from the previous year, after expanding into markets in Europe and other overseas regions. The Chinese group had previously surpassed Tesla on a quarterly basis, but now it has surpassed the American competitor in annual deliveries of all-electric models. «BYD has strengthened its position globally,» said Tu Le, founder of consultancy Sino Auto Insights, adding that Chinese innovation in the mass segment of electric vehicles makes it difficult for Tesla and other manufacturers to compete. «BYD, along with the rest of the Chinese electric vehicle industry, has raised the bar so high that it has become very difficult to design a vehicle that can take significant market share from them,» he added. Although Tesla has increased sales every year between 2011 and 2023, the numbers announced Friday represent the second consecutive annual decline. The company is under heavy pressure after the elimination of US tax credits, the negative consumer reaction to Musk's political activities and the public conflict between the world's richest man and US President Donald Trump. Tesla on Friday said it delivered 418,227 vehicles in the final quarter of 2025, down 16% from the same period last year and below market expectations of 423,000 vehicles. While the group's traditional automotive business has declined, Musk has made a strategic shift toward self-driving, artificial intelligence, and robotics. «Tesla doesn't even seem to want to compete anymore [pe segmentul de vehicule electrice pure]» said Le. «If they did, they would be on the verge of launching new models.» The company took the unusual step this week of releasing analysts' estimates of annual shipments ahead of the official announcement, in what appeared to be an attempt to manage market expectations. Tesla tried to revitalize sales with an updated version of the Model Y, as well as a cheaper, streamlined version. However, the comeback has not been as strong as the company had hoped, amid an influx of more affordable electric vehicles from Chinese and Western rivals. «Europe remains an ongoing hurdle for Tesla, as the company continues to struggle to secure regulatory approvals for its fully autonomous driving (FSD) technology,» Wedbush analyst Dan Ives said in a note. He estimated that the technology would receive approval from European authorities in the first half of 2026. While Tesla struggles to recover its sales in Europe, BYD has rapidly increased its market share across the continent with new, more affordable electric vehicle models.
For other news, analyses, articles and business information in real time, follow NV on WhatsApp Channels