Chinese automaker BYD has become the largest electric car producer after surpassing Tesla on Friday.
Tesla lost its top position after a customer revolt against Elon Musk’s right-wing policies and tough competition from abroad led to a decrease in sales for the second consecutive year.
Tesla announced it delivered 1.64 million vehicles in 2025, a 9% decrease from the previous year.
Chinese rival BYD, which sold 2.26 million vehicles last year, is now the largest electric car manufacturer, according to AP.
In the fourth quarter, sales totaled 418,227 units, below the 440,000 expected by analysts surveyed by FactSet.
Sales levels could have been impacted by the expiration of a $7,500 tax credit, gradually phased out by the Trump administration at the end of September.
Despite the various issues affecting the company, Tesla's shares ended 2025 with a gain of approximately 11%, amid investors' hopes that CEO Elon Musk will fulfill his ambitions to transform Tesla into a leader in robotaxi services and to convince consumers to adopt humanoid robots capable of performing basic tasks in homes and offices.
Tesla's shares rose nearly 2% before Friday's market opening.