This article first appeared on GuruFocus.
Tesla (TSLA, Financials) may lose its distinction as the world’s biggest electric car producer to BYD in 2025. Tesla is predicted to sell 1.6 million battery-electric vehicles, which is 8% less than in 2024. BYD sold 2.26 million. Official numbers are expected soon, but numbers suggest that BYD will beat Tesla every year for the first time.
Tesla’s sales went down after a year of more competition from China, more levies, and lackluster demand in important markets. The company’s stock price rose late in 2025, reaching an all-time high of $490 in December after CEO Elon Musk revealed that Texas was testing self-driving cars.
The company wants to grow its work in autonomous driving and robotics in 2026 and beyond. BYD is the best-selling electric vehicle maker in the world because of its low costs, high sales in China, and government support.
Tesla will reveal its 2025 delivery and production forecast later this week, which will provide investors additional information about the company’s plans for recovery.