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.
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.
Uncertainty over tariffs and an unpredictable trade war is weighing heavily on companies as they report their latest financial results and try to give investors financial forecasts. Some tariffs remain in place against key U.S. trading partners, but others have been postponed to give nations time to negotiate. The tariff and trade picture has been shifting for months now, sometimes changing drastically on a daily basis. Those shifts make it difficult for companies and investors to make a reliable assessment of any impact to costs and sales.
By TOM KRISHER and BERNARD CONDON Associated Press
Updated
Tesla's global annual sales fell for the first time in more than a dozen years, a blow to a stock that has soared since Donald Trump's election and its CEO billionaire became a top policy adviser to the president elect. Sales rose 2.3% in the final quarter but that was not enough to overcome a sluggish start to 2024. The annual decline for the Austin, Texas, company came despite offers of discounts such as 0% financing, free charging and low-priced leases. Tesla's 1.79 million sales for 2024 was 1.1% below 2023 sales as demand for electric vehicles in the U.S. and elsewhere slowed.
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.
