Core Insights - Tesla has lost its position as the world's leading electric vehicle maker to BYD, marking a significant shift in the EV market landscape [1][8] - Tesla experienced a 9% decline in fully electric vehicle deliveries in 2025, dropping to 1.64 million units from 1.79 million in 2024, primarily due to increased competition and the expiration of U.S. federal EV tax credits [2][4] - BYD reported a 28% increase in pure EV sales, delivering 2.26 million vehicles in 2025, driven by aggressive international expansion, particularly in Europe [3][6] Tesla's Performance - Tesla's sales growth, which had been uninterrupted from 2011 to 2023, has now contracted for two consecutive years [4] - The company has faced challenges from reduced government incentives, increased competition, and reputational issues related to CEO Elon Musk's public controversies [4][7] - Efforts to boost demand through a refreshed Model Y and a lower-priced variant have not been successful due to the influx of competitively priced EVs from rivals [5] BYD's Growth - BYD's growth in the EV market is attributed to its successful international expansion and capturing a significant share of the European EV market [3][6] - The rise of Chinese automakers, including BYD, has further diminished Tesla's market dominance [6][8] Market Comparison - Tesla's market capitalization stands at $1.37 trillion, while BYD's is at $846.36 billion [9] - Over the past year, Tesla's stock has gained 15.50%, compared to BYD's 8.29% [9]