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.
President Donald Trump took a break from his bitter public feud with Elon Musk by offering support to Tesla in an early morning post on Truth Social. The post didn't help the company's stock, which fell 8%. Trump posted on Truth Social that he wanted Tesla to "thrive" and didn't plan on trying to hurt the company as many investors feared. But investors seem more worried now about Musk's warning in a conference call a day earlier of "a few rough quarters" as the company shifts focus from selling cars to offering rides in self-driving taxis. The warning came after Tesla reported a 16% drop in quarterly profit.
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.
Cruise's trouble-ridden robotaxis are on the road to joining Uber's ride-hailing service next year as part of a multiyear partnership bringing together two companies that once appeared poised to compete for passengers. The alliance is the latest change in direction for Cruise since its license to provide driverless rides was suspended in October 2023 after one of its robotaxis dragged a jaywalking pedestrian who had been struck by a human-driven vehicle across a darkened San Francisco street. Cruise's robotaxis are still sidelined in California, but some of its Chevy Bolts are giving autonomous rides in Phoenix and Dallas with humans behind the wheel to take over if something goes wrong.
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.
