Chinese BYD snatches EV market crown from Tesla, Tesla sales fall for the second consecutive year:

News Topical, Digital Desk : Tesla has suffered a major setback in the electric vehicle (EV) market due to intensifying competition, the end of tax credits in the US and softening demand. Tesla has lost its title as the world's largest EV maker to China's BYD after annual sales declined for the second consecutive year.

Global EV sales grew 28 percent last year, with BYD selling more vehicles than Tesla on an annual basis for the first time. Furthermore, Musk's right-wing views and Trump support have also weighed heavily on Tesla, causing the company to lose its advantage in North America and Europe.

BYD benefited from rapid expansion in Europe, where it further strengthened its lead over its American rival. The company sold 2.26 million vehicles worldwide, including in China. Meanwhile, Tesla's fourth-quarter deliveries fell 15.6 percent.

In the October-December quarter, the company delivered 418,227 vehicles, compared to 495,570 a year earlier. Tesla sales declined 9 percent year-on-year.

Tesla deliveries in 2025 were 1.64 million, down from 1.79 million in 2024. This is the second consecutive year the company has seen annual sales decline. Demand in the US weakened further after the $7,500 federal EV tax credit expired at the end of September.

Analysts say stiff competition in North America and Europe from Chinese companies, as well as European brands like Volkswagen and BMW, has increased pressure on Tesla. Meanwhile, Tesla is now focusing more on future projects such as robotaxi, robotics, and self-driving technology.

Tesla car sales may have declined, but the company's shares rose more than 11 percent in 2025. This also increased Musk's wealth.

Meanwhile, buoyed by its success in surpassing Tesla, BYD reported that it will sell 1 million vehicles outside China in 2025, a 150 percent increase compared to 2024. The company has set a target of selling at least 1.6 million vehicles outside China in 2026.