Elon Musk Podcast Tesla has lost the EV crown to a Chinese company
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Jan 9, 2026 In a surprising turn, Tesla has lost its title as the world's largest electric vehicle maker to BYD. A drop in deliveries, worsened by the expiration of the federal tax credit and collapsing European sales, complicates Tesla's position. Meanwhile, intense competition in China adds pressure. Despite these challenges, Tesla's stock saw an 11% increase, fueled by optimism around robotaxis and energy storage, which reached record highs. The rollout of Cybercab production is set to begin, hinting at a transformative future for the company.
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Tesla Loses Top EV Spot
- Tesla delivered 1.64 million vehicles in 2025, a 9% decline from 2024, while BYD sold 2.26 million and became the largest EV maker.
- This marks a structural shift where Tesla no longer dominates global EV volume despite its market influence.
Tax Credit Expiration Hurt Q4 Demand
- The $7,500 U.S. federal tax credit expired Sept 30, 2025, which pulled demand forward into Q3 and left Q4 weak.
- Tesla lacked comparable dealer incentives, so the credit's expiration amplified its quarterly sales drop.
Political Backlash Reduced Sales
- Musk's political endorsements and statements triggered protests and demand destruction in Europe and parts of the U.S.
- That reputational hit contributed to a meaningful and uneven sales decline in key markets.