Tesla confirmed today that its vehicle sales fell 8.6pc last year.
Tesla said it delivered 1.64 million vehicles in 2025.
It means Chinese rival BYD, which sold 2.26 million electric vehicles last year, is now the biggest EV maker.
Tesla sales have dropped as some prospective customers have been turned off by Elon Musk’s right-wing politics, including his high-profile backing of Donald Trump’s campaign for the US presidency in 2024 and support for anti-immigrant movements in Europe.
But the EV pioneer now also faces stiff overseas competition, including from established brands’ electric cars and cheaper new alternatives, including BYD.
In the US, the expiration of a Biden-era $7,500 (€6,380) tax credit for EV buyers that was phased out by the Trump administration at the end of September may also have weighed on sales.
In the most recent quarter, Tesla deliveries declined 16pc to 418,227 vehicles, the company said.
In Ireland, sales of Tesla cars fell more than 5pc in 2025, while BYD was up 80pc, according to figures from the Society of the Irish Motor Industry (SIMI).
Tesla still outsold BYD in Ireland – selling 2,933 cars in 2025 versus the Chinese firm’s 2,633, but the gap has narrowed.
Neither made it into the top 10 selling car brands here, a list which is still dominated by established Japanese and European manufacturers.
Tesla’s latest worldwide delivery figures were worse than analyst estimates.
The US company registered only 1,942 cars last month in France, down 66pc from a year earlier, according to that nation’s auto association.
Sales plunged 71pc in Sweden and 44pc in Spain, with deliveries dropping in all three countries for the full year.
Norway remained the exception to the trend, with the company registering 5,679 vehicles in December, up almost 90pc from a year earlier. Tesla’s popularity has endured in the market, where 96pc of new cars sold last year were fully electric.
Despite its declining sales, Tesla shares rose today and were up in 2025. That’s in part driven by hopes Mr Musk can deliver over the long term with ambitious plans for self driving robotaxi services and for the design and manufacture of humanoid robots.
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