Tesla is facing heightened competition, the expiration of US tax credits, and brand damage due to CEO Elon Musk’s political statements.
Meanwhile, BYD is experiencing robust growth in Europe, where the Chinese automaker is expanding its lead over its American counterpart.
Tesla’s total sales for the year fell by over 8%, slightly more than analysts from Visible Alpha had predicted, and fourth-quarter sales dropped more than 15%, exceeding analysts’ expectations as well.
BYD reported a remarkable 150% increase in sales outside of China compared to 2024.
Globally, EV sales surged by 28% last year.
Tesla shares decreased by more than one percent in morning trading.
An analyst mentioned to Reuters that he believes investors are more focused on the company’s potential in robotaxis and humanoid robots rather than on delivery figures.
Tesla introduced “Standard” versions of the Model Y and Model 3 in October, priced about $5,000 below the previous base models to attract car buyers.
This decision disappointed some investors who were anticipating larger price cuts or a significantly new mass-market product.
Despite weakening vehicle deliveries, Tesla shares rose around 11.4% in 2025, enhancing Musk’s wealth.
