Tesla lost its title as the top-selling electric vehicle maker due to declining sales influenced by customer backlash against Elon Musk’s politics, expiring tax breaks, and tough competition. Despite a 9% drop in deliveries in 2025, Chinese rival BYD surpassed Tesla as the largest EV maker with 2.26 million sales. Musk’s ambitions for robotaxi services and humanoid robots are driving investor optimism. Tesla’s stock fell 2.6% to $438.07 as sales missed targets due to the expiration of an electric vehicle tax credit. Musk’s focus on robotaxi services, energy storage, and robots for homes and factories is expected to shift Tesla’s future away from car sales. Tesla aims to compete with Chinese models in Europe and Asia with new stripped-down versions of the Model Y and Model 3. Analysts expect a 3% drop in sales and a nearly 40% decrease in earnings per share for the fourth quarter of 2025. Musk’s plans for autonomous vehicles and AI-powered Cybercab without a steering wheel or pedals are in the works. Regulatory challenges and safety concerns pose hurdles for Tesla’s autonomous endeavors, but analysts like Dan Ives remain bullish on the stock. Tesla’s directors awarded Musk a new pay package to keep him focused on the company’s goals. Musk could become the world’s first trillionaire when SpaceX goes public in a highly anticipated IPO later this year.

Read more at Yahoo Finance: Elon Musk promised a ‘major rebound’ for Tesla in 2025. Instead it fell behind its biggest rival from China