Tesla Car Sales Dropped 9% in 2025, Falling Behind China’s BYD
The New York Times••business
Key Points:
- Tesla’s car sales fell by 16 percent in the last quarter of 2025, primarily due to the removal of federal tax credits that previously incentivized electric vehicle purchases in the U.S.
- For the first time, Tesla sold fewer electric vehicles than China’s BYD in 2025, marking a significant loss of market share for the once-leading EV manufacturer.
- CEO Elon Musk has shifted Tesla’s focus away from becoming the world’s largest carmaker toward developing self-driving technology and humanoid robots, areas that currently generate limited revenue.
- The elimination of up to $7,500 in federal tax credits and efforts to roll back clean air regulations have negatively impacted Tesla, which holds 45 percent of the U.S.
