Like Vecna in the Stranger Things series finale, Tesla has also been vanquished in its quest to reshape the world in its image using alternative energy sources. In 2025, for the first time ever, Elon Musk's automaker sold fewer electric vehicles than China's BYD. Tesla sold 1.64 million EVs last year, the company reported yesterday, while BYD's sales jumped 28% to 2.26 million. US demand for EVs is softening, while Musk's right-wing political rhetoric has alienated some consumers in Europe, experts say. Tesla's dethronement was all but sealed when the US eliminated its $7,500 EV tax credit at the end of September: - Tesla sales plummeted 16% in Q4 after the credit expired—worse than Wall Street's already low expectations.
- Last year was the second straight year that Tesla sold fewer cars than the year before.
Meanwhile, BYD didn't need the US market (where it doesn't operate) to supplant Tesla's aging lineup, relying instead on growth in Europe and Latin America to bolster its business in China. Is Tesla even an EV company anymore? Financially, yes. Car sales still account for ~75% of Tesla's revenue, the Wall Street Journal noted. But symbolically? Maybe not. Musk has pivoted to touting the company's plans in robotics, predicting that 80% of its value will eventually come from its humanoid robot, Optimus. Investors are buying it: Even as Tesla's car sales plummeted, its stock increased 11% in 2025. In November, shareholders approved an unthinkably vast pay package for Musk, mainly to keep him engaged as CEO and to prevent the stock from crashing. It's not just Tesla. Rivian reported a worse-than-expected sales decline yesterday and it, too, is repositioning itself as an AI-centric company. Looking ahead: Experts expect another tough year for the EV market in 2026, though it could rebound in 2027 if companies make good on their promise to offer cheaper options.—AE | 
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