Tesla Is Struggling — The Global EV Market Isn't

Core Insights - Tesla's sales decline in North America contrasts with the overall growth in the global electric vehicle (EV) market, where sales increased by 20% year-over-year to 20.7 million units in 2025 [2][4] - BYD has surpassed Tesla as the leading EV manufacturer, benefiting from strong demand, particularly in Europe [4][5] Group 1: Global Market Performance - Global electric vehicle sales reached 20.7 million units in 2025, marking a 20% increase from the previous year [2] - The regional breakdown shows significant growth in China (12.9 million vehicles, +17% year-over-year) and Europe (4.3 million vehicles, +33% year-over-year), while North America saw a decline (1.8 million vehicles, -4% year-over-year) [6] Group 2: Regional Insights - North America experienced a 4% decline in EV sales, primarily due to the expiration of the Federal EV tax credit, with a notable 49% drop in fourth-quarter sales compared to the previous quarter [3][5] - Mexico's plug-in vehicle sales increased by 29%, helping to mitigate the downturn in the U.S. and Canada [3] Group 3: Company-Specific Developments - BYD achieved significant milestones, including multiple vehicles surpassing one million sales, and is recognized as a major winner in the EV sector for 2025 [4] - Tesla faced challenges, including a second consecutive annual sales decline and brand damage linked to CEO Elon Musk's political activities [5][6] Group 4: Future Outlook - Forecasts suggest that the EV market in North America may shrink by nearly a third in 2026, marking a significant shift after seven years of growth [7] - Major automotive companies like General Motors and Ford have reduced their EV model offerings, potentially creating opportunities for global automakers to capture increasing demand [8]