: BYD set to overtake Tesla in global EV sales Tesla delivered around 1.64 million vehicles in 2025, down from 1.79 million the previous year. The decline followed a strong third quarter driven by buyers rushing to secure US tax credits before they expired at the end of September. Demand softened sharply in the final quarter after the $7,500 federal EV incentive ended. Tesla delivered 418,227 vehicles between October and December, missing market expectations and marking a year-on-year drop of more than 15%. Analysts say Tesla faced mounting challenges in North America and Europe during 2025. Growing competition from Chinese manufacturers and established European brands such as Volkswagen and BMW eroded its market share. Brand-related headwinds also played a role, with criticism of CEO Elon Musk’s political statements affecting consumer sentiment in key markets. Despite weaker deliveries, Tesla’s shares edged higher, supported by investor focus on future technologies. Market participants remain closely focused on Tesla’s ambitions in self-driving vehicles and robotaxis. Analysts say expectations around these projects continue to influence the company’s valuation more than short-term delivery figures.