Tesla lost its crown as the world's bestselling electric vehicle maker on Friday as a customer revolt over Elon Musk's right-wing politics, expiring U.S. tax breaks to buyers and stiff overseas competition pushed sales down for a second year in a row. Tesla said that it delivered 1.64 million vehicles in 2025, down 9% from a year ago. Chinese rival BYD, which sold 2.26 million vehicles last year, is now the biggest EV maker. For the fourth quarter, sales totaled 418,227, falling short of the 440,000 that analysts polled by FactSet expected. The sales total were hit hard by the expiration of a $7,500 tax credit that was phased out by the Trump administration at the end of September.
By BERNARD CONDON and MATT OTT AP Business Writers
Federal regulators have opened yet another investigation into Tesla's so-called full-self driving technology after dozens of incidents in which the electric vehicle maker's cars ran red lights or drove on the wrong side of the road, sometimes crashing into other vehicles and endangering drivers. The National Highway Traffic Safety Administration said in a filing dated Tuesday that it has 58 incident reports of Tesla vehicles violating traffic safety laws while operating in full self-driving mode. In reports to regulators, many of the Tesla drivers said the cars gave them no warning about the unexpected behavior. The probe covers 2.9 million vehicles, essentially all Teslas equipped with full self-driving technology
Sales of Tesla electric cars fell sharply in the last three months compared to a year earlier as boycotts over Elon Musk's political views continue to keep buyers away. Tesla is also facing stiff competition from other electric vehicle makers, especially in Europe where China's BYD has taken a bite out of its market share. The 13% plunge in sales reported Wednesday adds to growing signs that Musk's embrace of U.S. President Donald Trump and far-right politicians in Europe has had a deep and enduring impact to Tesla's brand appeal. Sales fell to 384,122 in April through June, down from 443,956 in the same period last year.
Tesla CEO Elon Musk appears to be confirming a report that the company's much-ballyhooed event to unveil a robotaxi will be delayed beyond its scheduled Aug. 8 date. Musk didn't give a new date, but in a posting on his social media site X he wrote that he requested a design change to the front of the vehicle. A message was left Monday seeking comment from Tesla. Bloomberg News reported on Thursday that the robotaxi event would be delayed due to changes sought by Musk. That sent Tesla shares down 8% for the day. But they have since rallied and were up nearly 3% in Monday afternoon trading.
Tesla's global sales fell for the second straight quarter despite price cuts and low-interest financing offers, another sign of weakening demand for the company's products and electric vehicles overall. The Austin, Texas, company said Tuesday that it sold 443,956 vehicles from April through June, down 4.8% from 466,140 sold the same period a year ago. But the sales were better than the 436,000 that analysts had expected. Demand for EVs worldwide is slowing, but still growing for most automakers. Tesla, with an aging model lineup and relatively high average selling prices, has struggled more than other manufacturers but retained its title of being the electric vehicle sales leader in the U.S. and across the world.
