Tesla Loses EV Crown to BYD Amid Sales Slump, Musk's Politics

• Tesla lost its title as the world's biggest electric vehicle maker to Chinese rival BYD, marking its second consecutive year of sales decline.
• Tesla delivered 1.64 million vehicles in 2025, a 9% drop from the previous year, while BYD sold 2.26 million vehicles.
• Factors contributing to the sales decline include customer backlash over Elon Musk’s right-wing politics and intense overseas competition.
• Fourth-quarter sales of 418,227 fell short of analyst expectations, possibly impacted by the expiration of a $7,500 tax credit.
• Despite sales challenges, Tesla's stock gained approximately 11% in 2025, driven by investor hopes for robotaxi and humanoid robot ventures.

Why It Matters: Tesla cedes EV sales leadership to BYD as 2025 deliveries fall for second year.