Yahoo Finance·2026-01-02 17:54Core Insights - Tesla's annual sales have declined for the second consecutive year, delivering 1.64 million vehicles in 2025, a 9% decrease from 1.79 million in 2024 [1] - The company missed analyst expectations for Q4 2025 deliveries, reporting 418,227 vehicles delivered, down 16% year-over-year [1][2] - Tesla has been overtaken by BYD as the world's largest electric vehicle maker, with BYD selling 2.26 million battery-electric vehicles in 2025, a 28% increase from the previous year [3] Sales Performance - Tesla's Q4 2025 delivery estimate was published at 422,850 vehicles, which was ultimately missed [2] - The decline in sales was exacerbated by the expiration of federal EV tax credits, leading to a nearly 23% drop in U.S. sales in November 2025 [5] Market Competition - Tesla faced increased competition from both Chinese automakers and legacy U.S. manufacturers, contributing to its sales decline [4] - BYD's expansion into Europe and other markets has allowed it to outsell Tesla on an annual basis [3] Stock Performance - Despite the sales decline, Tesla's stock price recently reached an all-time high of $489.88 in December, following positive developments in driverless vehicle testing [6] Executive Compensation - Tesla's board reinstated Elon Musk as the highest-paid CEO in history with a new pay package of 96 million restricted shares valued at $29 billion [7] - The board implemented a rule requiring investors to hold 3% of the company's stock to challenge Musk's compensation, effectively shielding him from potential disputes [8]