Tesla Inc. fell further behind China’s BYD Co. in the global electric-vehicle race after the US manufacturer reported an annual drop in deliveries, underscoring mounting pressure on the company’s growth outlook.
The automaker said Friday that vehicle sales declined 8.6% last year, while fourth-quarter deliveries slid 16% to 418,227 units, missing analyst expectations tracked by Bloomberg. The results left Tesla well short of BYD, which expanded battery-electric vehicle sales in both the quarter and full year.
BYD delivered nearly 2.26 million fully electric vehicles in 2025, compared with Tesla’s 1.64 million, consolidating its position as the world’s largest EV seller. The Chinese manufacturer also continued to benefit from strong demand for plug-in hybrids, shipping more than 2 million such vehicles for a second straight year.
Chief Executive Officer Elon Musk sought to redirect investor focus toward advances in autonomous driving, highlighting progress toward a long-promised robotaxi service. While Tesla began limited driverless testing late in the year, rides remain restricted to small fleets in Austin and the San Francisco Bay Area, with safety supervisors still seated in front.
BYD widened its lead after narrowly trailing Tesla in 2024. Although the Chinese company outsold Tesla in fully electric vehicles during the fourth quarter of that year, Tesla had retained a slim edge on an annual basis.
Skepticism on Wall Street has intensified regarding Tesla’s medium-term outlook. Two years ago, analysts expected the company to deliver more than 3 million vehicles in 2026. Consensus forecasts have since fallen to roughly 1.8 million, reflecting concerns over competition, pricing pressure and slowing demand.
Tesla closed out the year by stoking anticipation for its Cybercab concept, a compact two-seat vehicle featuring butterfly doors. The prototype, first shown in late 2024, omitted a steering wheel and pedals, though board chair Robyn Denholm said in October that the company would include those components if regulators require them.
Tesla shares rose 1.5% as of 9:12 a.m. in New York ahead of regular trading Friday, rebounding slightly after six consecutive declines at the end of 2025. The stock gained 11% over the course of last year.
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