Tesla Loses EV Crown to BYD Amid Sales Dip, Expiring Credits

• Tesla lost its position as the top electric vehicle seller to China’s BYD in 2025, marking its second consecutive year of sales decline.
• Factors contributing to Tesla's decline include intensifying competition, expiration of US tax credits, and brand damage from CEO Elon Musk's political rhetoric.
• BYD's success is driven by rapid growth in Europe, with its sales outside of China climbing approximately 150% from 2024.
• Tesla's full-year sales dropped over 8%, and Q4 sales slid more than 15%, exceeding analyst predictions.
• Despite weakened deliveries, Tesla launched cheaper "Standard" Model Y and Model 3 versions, disappointing some investors who expected more significant changes.

Why It Matters: BYD overtakes Tesla as top EV seller in 2025 due to competition, expiring credits, and brand issues.