Tesla's electric vehicle deliveries fell in 2025, relinquishing its position as the world's leading EV seller to Chinese competitor BYD. The company reported delivering 1.64 million vehicles, a 9% decrease from the previous year, while BYD sold 2.26 million vehicles. This shift marks a significant change for Tesla, which had previously experienced rapid growth and propelled Elon Musk to become the world's wealthiest individual.

The sales decline occurred despite efforts to boost demand, including an endorsement from former President Donald Trump, who praised Musk at a press conference in front of Tesla vehicles at the White House and announced his intention to purchase one. However, the expiration of a $7,500 federal tax credit for electric vehicle purchases and increased competition contributed to the downturn.

Tesla's fourth-quarter sales also fell short of expectations, totaling 418,227 vehicles, below the already reduced target of 440,000 projected by analysts polled by FactSet. The company had anticipated a "major rebound" in 2025, but instead faced challenges including a customer backlash related to Musk's political views and intensifying competition in overseas markets. The loss of the EV sales crown to BYD underscores the growing strength of Chinese automakers in the global electric vehicle market.