Tesla releases 2025's EV sales figures, and they are disappointing

EVs have gained substantial ground over the past few years, but the year 2025 proved a bit more challenging for Elon Musk's leading EV maker, Tesla, whose annual sales declined for the second consecutive year.

Tesla's low EV sales are caused by the removal of the federal tax credit in the US and increased competition from Chinese automakers.

Here's how many EVs Tesla sold in 2025

Citing figures released by the company, the publication noted that Tesla delivered 1.63 million vehicles globally, a 9% decrease from the 1.79 million units sold in 2024, as per TechCrunch.

What's noteworthy here is that around 50,850 of these vehicles are classified as “other models,” which includes the much-anticipated Cybertruck alongside the older Model X and Model S.

In the fourth quarter, Tesla reported sales of 418,227 vehicles, reflecting a steep 15.6% drop compared to the same period last year, and this figure was much lower than analysts had expected.

Following this announcement, Tesla’s stock fell by over 2% as trading resumed after the New Year holiday.

Once the leader in global EV sales, Tesla's market share has reportedly eroded in both Europe and China, particularly owing to the rise of competitors like BYD, which delivered 2.26 million EVs in 2025, overtaking Tesla and becoming the best-selling EV brand globally.

Although Tesla is facing increased competition in the US, Chinese manufacturers are currently barred from selling vehicles there, a move which bars BYD from dethroning Tesla there.

The discontinuation of the $7,500 federal tax incentive seems to have had the most significant impact on fourth-quarter sales. Tesla achieved a record-breaking 497,099 vehicle sales in the third quarter, as consumers rushed to purchase EVs before the tax credit was removed.

Despite this decline, the biggest chunk of Tesla’s revenue still stems from its EV business, generating $28 billion in total revenue in the third quarter, with $21.2 billion from EV sales alone.