NEW YORK (AP) \u2014 Tesla lost its crown as the world\u2019s bestselling electric vehicle maker on Friday as a customer revolt over\u00a0Elon Musk\u2019s right-wing politics\u00a0and stiff overseas competition pushed sales down for a second year in a row.<\/p>\n\n\n\n
Tesla said that it delivered 1.64 million vehicles in 2025, down 9% from a year earlier.<\/p>\n\n\n\n
Chinese rival BYD, which sold 2.26 million vehicles last year, is now the biggest EV maker.<\/p>\n\n\n\n
For the fourth quarter, sales totaled 418,227, falling short of the 440,000 that analysts polled by FactSet expected. The sales total was impacted by the expiration of a $7,500\u00a0tax credit that was phased out\u00a0by the Trump administration at the end of September.<\/p>\n\n\n\n
Tesla stock was mostly unchanged at $450.27 in early trading Friday.<\/p>\n\n\n\n
Even with multiple issues buffeting the company, investors are betting that Tesla CEO Musk can deliver on his ambitions to make Tesla a leader in\u00a0robotaxi service\u00a0and get consumers to embrace\u00a0humanoid robots\u00a0that can perform basic tasks in homes and offices. Reflecting that optimism, the stock finished 2025 with a gain of approximately 11%.<\/p>\n\n\n\n
The latest quarter was the first with sales of stripped-down versions of the Model Y and Model 3 that Musk unveiled in early October as part of an effort to revive sales. The new Model Y costs just under $40,000 while customers can buy the cheaper Model 3 for under $37,000. Those versions are expected to help Tesla compete with Chinese models in Europe and Asia.<\/p>\n\n\n\n
For fourth-quarter earnings coming out in late January, analysts are expecting the company to post a 3% drop in sales and a nearly 40% drop in earnings per share, according to FactSet. Analysts expect the downward trend in sales and profits to eventually reverse itself as 2026 rolls along.<\/p>\n\n\n\n
Investors have largely shrugged off the falling numbers, choosing to focus on Musk’s pivot to different parts of business.<\/p>\n\n\n\n
He has been saying that plunging car sales don\u2019t matter as much now because the future of the company lies more with his new driverless robotaxis service, the company\u2019s energy storage business and building robots for the home and factory. To make his task worthwhile, Tesla\u2019s directors awarded Musk a potentially enormous\u00a0new pay package that shareholders backed\u00a0at the annual meeting in November.<\/p>\n\n\n\n
Musk, already the world\u2019s richest man, scored another huge windfall two weeks ago when the Delaware Supreme Court reversed a decision that deprived him of a $55 billion pay package that Tesla doled out in 2018.<\/p>\n","protected":false},"excerpt":{"rendered":"