Tesla sales fall for the second year in a row

Core Insights - Tesla experienced a significant decline in sales, with 418,227 electric vehicles sold in Q4, marking a 15.6% decrease from the same period in 2024, leading to a second consecutive annual sales decline [1][2] - BYD surpassed Tesla in annual sales of battery-electric vehicles for the first time, with BYD's sales rising nearly 28% to 2.26 million units in 2025, while Tesla delivered about 1.64 million vehicles for the year [2][3] Sales Performance - Tesla recorded its first-ever annual sales decline in 2024, attributed to the end of the $7,500 tax credit for new EVs, which previously drove record sales [3] - Sales hit their lowest level since 2022 in November, despite the introduction of cheaper versions of the Model 3 and Y vehicles [4] Market Challenges - Tesla faced intense competition in China from local manufacturers offering advanced electric models at lower prices, and in Europe, sales dropped significantly due to backlash against CEO Musk's political endorsements, with December registrations falling 66% in France and 44% in Spain [5] - Analysts noted that Tesla's product lineup has become stale, with no new vehicle launches since the Cybertruck in 2023, which has underperformed in sales [6] Stock Performance and Future Initiatives - Despite sales challenges, Tesla's stock price reached a record high in December, driven by investor optimism regarding the robotaxi rollout [7] - The company is preparing for mass production of its Cybercab robotaxi, which lacks a steering wheel or pedals, and aims to expand its autonomous ride-hailing service [8] - Musk indicated that the upcoming launch of "unsupervised" Full Self-Driving software is expected to boost vehicle demand, with plans for the Austin robotaxi service to operate without safety monitors by the end of 2025 [9][10]