The year 2025 marked a difficult turning point for Tesla. The American EV maker suffered a second consecutive year of falling production and deliveries. Meanwhile, Chinese giant BYD has established itself as the world’s leading manufacturer of electric vehicles — a feat achieved without even being present in the North American market.
Among the 2025 highlights and lowlights for Tesla :
• Tesla global sales were down 8.6 percent;
• The Model Y remains the brand’s best-selling vehicle;
• The Cybertruck confirmed its status as a commercial failure.
A politically and economically complicated year
The brand was penalized by several factors: the political controversies surrounding Elon Musk, the reduction of government subsidies and increasingly fierce competition. The sales decline occurred even as the global electric vehicle market saw strong growth, particularly in Europe where sales increased by over 25 percent.
By the end of the year, BYD officially dethroned Tesla to become the global number one in the sector.
Cybertruck: a costly fiasco
The category grouping "other models" (Cybertruck, Model S, Model X) is collapsing. Tesla aimed for an annual production of 250,000 Cybertrucks, but the company didn’t even reach a fifth of that goal. Initially presented as a revolutionary product for North America, the Cybertruck has become a commercial burden in both the U.S. and Canada.
BYD becomes the new global king of EVs
In 2025, BYD delivered 2,256,714 electric vehicles worldwide, surpassing Tesla in both production and sales. This historic turning point illustrates Tesla's loss of momentum; while 2025 did represent its third-best production year ever, the company is losing significant market share in a rapidly expanding sector.
Europe and the U.S.: Maximum pressure
Between January and November 2025, Tesla sales plummeted by 28 percent in Europe, while the overall EV market there grew by 27 percent. In the U.S., the revision of incentive programmes and disappointed expectations regarding the Cybertruck accentuated the slide.
Canada: the downward spiral
In Canada, Tesla experienced a true collapse in 2025, with an estimated 67 percent drop in sales during the first half of the year. Quebec is the most affected province, primarily due to:
• The reduction of the provincial rebate (which dropped from $7,000 to $4,000 in 2025, and now to $2,000 for 2026);
• The political backlash linked to Elon Musk's public image, declarations and actions.