3 6 Ke·2026-01-09 01:50Core Viewpoint - Tesla has lost its title as the global electric vehicle sales leader to BYD, with significant declines in vehicle deliveries and production in 2025, marking the second consecutive year of year-over-year sales shrinkage [2][4][9]. Summary by Sections Tesla's Delivery and Production Data - In Q4 2025, Tesla delivered 418,227 vehicles, a 16% decrease year-over-year. For the entire year, Tesla's deliveries totaled 1.636 million vehicles, down from 1.789 million in 2024, representing an 8.6% decline [2][4]. - The Model 3 and Model Y accounted for 96.8% of Tesla's total deliveries, with 1.585 million units delivered, reflecting a 7% decrease [5][20]. BYD's Performance - BYD sold 4.6 million vehicles in 2025, with pure electric vehicle sales reaching 2.2567 million, a 28% increase year-over-year, surpassing Tesla by approximately 620,000 units [5][9]. - In key European markets, BYD's sales surged, with a 706.2% increase in Germany and a significant presence in the UK, further solidifying its lead over Tesla [9][20]. Market Challenges for Tesla - Tesla's CEO Elon Musk's political comments have negatively impacted sales in Europe and the US, contributing to a 39% drop in European registrations and a 10% decline in US deliveries [8][9]. - The expiration of federal electric vehicle tax credits in the US has diminished Tesla's price competitiveness against traditional vehicles, leading to a decline in demand [10][15]. Strategic Adjustments - To boost sales, Tesla introduced lower-priced versions of the Model Y and Model 3 in Q4 2025, with prices reduced by approximately $5,000 to $5,500 [10][12]. - However, the reduction in features and quality has raised concerns about the overall value proposition of these new models, leading to a drop in stock prices following the announcement [13][22]. Competitive Landscape - Tesla faces increasing competition from both established automakers like Volkswagen, which saw an 89% increase in electric vehicle sales, and new entrants in the Chinese market, such as Li Auto and Aito [8][20]. - The lack of new model launches has intensified sales pressure in China, Tesla's largest market, where sales fell by 7.37% year-over-year [20]. Stock Market Reaction - Following the announcement of declining sales, Tesla's stock experienced significant volatility, with a notable drop of 4.14% shortly after the news, reflecting market skepticism about its valuation and future growth prospects [22].