Tesla Reports 2025 Delivery Decline as BYD Leads Global EV Market

Tesla reported a decline in its global vehicle deliveries for 2025, underscoring mounting challenges in the rapidly evolving electric vehicle market. The automaker delivered 1.64 million vehicles, representing a 9 percent drop compared to the previous year.

In contrast, Chinese automaker BYD surged ahead, selling 2.26 million electric vehicles in 2025 and overtaking Tesla to become the world’s largest EV manufacturer by total sales. The milestone reflects the growing strength of Chinese brands in the global clean energy vehicle sector.

Tesla’s struggles were particularly evident in the final quarter of the year. The company delivered 418,227 vehicles in the fourth quarter, falling short of market expectations and missing even revised analyst forecasts. The weaker-than-expected performance raised concerns among investors about slowing demand.

One major factor weighing on sales was the expiration of the $7,500 federal electric vehicle tax credit, which ended in late September. The removal of the incentive dampened consumer demand during the final months of the year, highlighting how EV purchases remain highly sensitive to government policy support.

The latest figures point to intensifying competition in the global EV market, with Chinese manufacturers gaining momentum through aggressive pricing, expanding production capacity, and strong domestic demand. As the industry matures, automakers like Tesla face increasing pressure to adapt to shifting market dynamics and evolving policy landscapes.