Tesla Sales Plunge 9%, BYD Seizes Global EV Crown Amid Competition & Policy Shifts

• Tesla's global vehicle sales dropped 9% in 2025 to 1.63 million units, marking the second consecutive annual decline.
• China's BYD surpassed Tesla, delivering 2.26 million EVs in 2025 to become the world's largest electric vehicle seller.
• Fourth-quarter deliveries for Tesla fell 15.6% year-over-year, partly due to the removal of the $7,500 US federal EV tax credit.
• Intensifying competition in Europe and China, alongside a strategic pivot by Elon Musk towards AI and robotics, are influencing Tesla's performance.
• Despite the strategic shift, vehicle sales remain the primary revenue driver for Tesla, accounting for $21.2 billion of $28 billion in Q3 revenue.

Why It Matters: Tesla faces declining sales and lost its top EV seller spot to BYD amid competition and strategic shifts.