Tesla lost its position as the world's top electric vehicle seller in 2025, a shift that analysts had predicted months earlier as mounting competition and political and market pressures weighed on the company's sales.

Tesla reported delivery of 1.64 million vehicles in 2025, a 9% decline from the previous year, according to The Associated Press.

The Chinese automaker BYD sold 2.26 million vehicles in the same period, overtaking Tesla to become the world's largest electric vehicle maker by volume.

Fourth-quarter Tesla deliveries totaled 418,227 vehicles, falling short of analyst expectations. Sales may have been affected in part by the expiration of a $7,500 federal tax credit that was phased out at the end of September by the Trump administration.

The outcome closely tracked a forecast issued in April by Counterpoint Research, which projected that BYD would surpass Tesla in global battery electric vehicle sales for the first time in 2025, capturing an estimated 15.7% market share.

Counterpoint analysts cited several factors behind the expected shift, including Tesla's reputational challenges tied to CEO Elon Musk's political alignment with President Donald Trump and his leadership role in the Department of Government Efficiency, known as DOGE.

The company said early 2025 data showed softening Tesla sales in the United States and Europe following consumer backlash.

In contrast, Counterpoint highlighted BYD's scale, vertical integration, and technological advances as key advantages.

The company controls major components such as batteries, motors, and power electronics, allowing it to manage costs while expanding production and charging infrastructure.

BYD also introduced an ultra-fast charging system that analysts described as a potential industry turning point.

Abhik Mukherjee, a research analyst at Counterpoint, said the system can deliver up to 400 kilometers (nearly 249 miles) of driving after as little as 5 minutes of charging.

"That technological leap is expected to significantly ease consumer concerns around charging time and boost EV adoption by reducing charging anxiety," Mukherjee said, noting that the system outpaces Tesla's Supercharger technology.

Counterpoint Associate Director Liz Lee said Musk's political profile may have contributed to Tesla's challenges.

"CEO Elon Musk has scored somewhat of an own goal against Tesla," Lee said, adding that early 2025 sales data suggested the company was beginning to feel the impact.

The firm also pointed to geopolitical risks, including trade tensions between the United States and China, delayed Tesla product launches, and intensifying competition across global EV markets as added headwinds.

Despite those pressures, investors have continued to back Tesla on expectations that the company can pivot beyond vehicle sales.

According to the AP, Tesla's stock finished 2025 up about 11%, fueled by hopes that Musk can deliver on plans to develop robotaxi services and expand into humanoid robots designed to perform basic tasks in homes and offices.