Tesla has lost its crown as the world’s top electric vehicle maker after reporting a sharp drop in sales for two consecutive quarters, NaijNaira can report.
According to The Independent, the second quarter of 2025 saw Tesla’s vehicle deliveries fall by 14%, marking its steepest decline yet. That followed a 13% year-on-year drop in Q1, allowing Chinese automaker BYD to overtake it in global EV sales.
Liz Lee of Checkpoint Research said, “Tesla’s struggles stem from stronger competition and damage to its brand image.” She added that Tesla’s involvement in politics, particularly Elon Musk’s brief stint in Donald Trump’s administration, alienated a chunk of its customer base across the US and Europe.
Musk’s continued political ties and endorsements have also discouraged many environmentally conscious buyers, especially in European markets. UK sales initially resisted the downturn but plummeted by 62% year-on-year in April.
Meanwhile, BYD is thriving. “We expect BYD’s global EV sales to grow by 45 per cent year-on-year in 2025,” Lee added.
Industry-wide, demand for EVs is rising. IEA data shows that EVs made up 22% of all new car sales in 2024, up from just 2.6% in 2019.
Tesla’s profitability is under pressure. Net income fell 71% in Q1 compared to last year, dropping from $3.3 billion in 2022 to just $409 million. Q2 earnings, due July 23, are expected to be weak again.
Musk’s fortune is shrinking in sync with Tesla’s market value, with over $100 billion wiped from his net worth so far in 2025.
Article updated 3 weeks ago. Content is written and modified by multiple authors.
