Tesla drops to second in global electric vehicle sales to BYD

Tesla Sales Decline Amid Controversy Surrounding Elon Musk’s Political Forays

Tesla, the electric vehicle manufacturer founded by Elon Musk in 2003, has seen its sales decline for the first time in recent years. According to the company’s latest figures, Tesla sold 1.64 million vehicles in 2025, a 9% decrease from the previous year. This marks a shift in the global market, as Chinese company BYD has surpassed Tesla as the top seller of electric vehicles.

The decline in sales comes amid controversy surrounding Musk’s political forays and his involvement with the US government. In 2024, Musk met with US President Donald Trump, which led to widespread protests at Tesla facilities and a slump in sales. Additionally, Musk’s leadership of a “government efficiency” panel, known as DOGE, resulted in layoffs of federal workers and further strained relations between Musk and Trump.

The expiration of the $7,500 tax credit for electric vehicle purchases, phased out by the Trump administration at the end of September, also had an impact on Tesla’s sales. The company’s fourth quarter sales totaled 418,227, falling short of analysts’ expectations.

Despite the decline in sales, investors have remained optimistic about Tesla and Musk’s plans to expand into driverless robotaxi services and humanoid robots for homes. Tesla stock finished 2025 up about 11% and has recently introduced two less expensive electric vehicle models to compete with cheaper Chinese models.

Musk’s personal wealth has also increased significantly, with estimates suggesting he could become the world’s first trillionaire if SpaceX’s public offering is successful later this year. In December, a court ruling awarded Musk a $55 billion pay package that had been paused since 2018. However, Tesla faces a potential setback in California, where it may lose its licence to sell cars due to allegations of misleading customers about the safety of its driverless taxis.

Source: Al Jazeera