Tesla Slows Down, BYD Takes World Lead — "Change of Throne" Signals New Era for EVs

The Long-Awaited "Change of Thrones"—BYD Surpasses Tesla in Annual Sales

The shift in the EV power structure, long anticipated, has now been confirmed in numbers. French-speaking media reported that in the full year of 2025, China's BYD sold 2.26 million units, surpassing Tesla, which fell to 1.64 million units, making BYD the world leader. The previous year, Tesla had a slight lead, but in 2025, the gap widened significantly. martinique.franceantilles.fr

According to Tesla's official announcement, the full-year deliveries for 2025 were 1,636,129 units, with Q4 (October to December) accounting for 418,227 units. The market reportedly expected higher quarterly levels, reinforcing a sense of "deceleration." Tesla Investor Relations

Why Tesla Struggled: End of Tax Incentives, European Headwinds, and Brand Damage

One factor emphasized in the article is the demand pull-forward reaction due to the end of EV purchase support (tax credits) in the U.S. There is speculation that Tesla couldn't maintain momentum after a rush before the tax incentives expired. martinique.franceantilles.fr

Additionally, Tesla's struggles in Europe are frequently mentioned. Analyst forecasts even suggest declines in major markets like North America, Europe, and China (according to bank estimates), giving the impression of narrowing growth opportunities. However, as an exception, it was reported that sales increased in Norway, where Tesla became the leader, indicating variance by country and region. martinique.franceantilles.fr

Another issue that cannot be overlooked is the "brand" problem. The article reports that Musk's political involvement has led to backlash and boycotts, particularly in Europe, affecting sales. Japanese reports also summarize this as "the impact of boycotts," indicating that it is no longer just a product competition but a phase where corporate image influences sales. martinique.franceantilles.fr

Yet, Stock Prices Rise in a "Twist": Is the Market Seeing "Avoidance of the Worst"?

Interestingly, despite seemingly weak numbers, the market is not entirely pessimistic. The article touches on the rise in Tesla's stock immediately after the announcement, introducing the idea that "relief from avoiding the rumored 'worse numbers'" is behind it. martinique.franceantilles.fr

In short, the market reacts not only to "growth" but also to the "degree of disappointment." When expectations are at their lowest, even bad news can be seen as "better than expected" and lead to buying. Regarding Tesla, it is also pointed out in other reports that, in addition to car sales, the future of AI, autonomous driving, and robotics are easily woven into the stock price narrative. Axios

Reasons for BYD's Victory: Broad Price Range and "Proactive Overseas Production and Supply Network"

On the other hand, BYD is praised for its large domestic market and price competitiveness, as well as its early efforts to establish production and supply networks overseas. The article introduces a comment from a Fitch Ratings representative, noting that BYD is a "pioneer" in building production capacity and supply chains abroad, which could serve as resilience in a complex environment of geopolitical risks and tariffs. martinique.franceantilles.fr

However, BYD is not invincible. There are suggestions that consumer caution in China could shake profitability. This is why they are shifting their focus overseas to create a "second engine" for growth—this scenario suggests that the future EV war will not only be about "technology" but also "the geopolitics of manufacturing and logistics." martinique.franceantilles.fr

Reactions on Social Media: Celebrations, Sneers, and "National Policy Debates" Erupt

The news typically "split" opinions on social media. On Reddit, the following points stood out.

1) "China's National Policy and Subsidies Are Too Strong" vs. "The West Has Also Provided Support"

Many voices attribute BYD's rise to "state backing," "subsidies," and "supply chain strength," with posts questioning the asymmetry in competition conditions. On the other hand, there are immediate counterarguments like "The West has also provided subsidies and bailouts." The discussion often spills over into the "pros and cons of industrial policy." Reddit

2) "Politics Aside, Tesla's Products Look 'Outdated'"

While some point to political backlash, many comments focus on the stagnation in product strategy, citing "slow model updates," "outdated lineup," and "new models not resonating." The perspective is that Tesla failed to stimulate replacement demand, beyond brand issues. Reddit

3) Investor Perspective Is Harsh: "Sales Decline Hurts, But the Market Moves on a Different Story"

In investment communities, there is a sentiment of summarizing the year as "tough," discussing the end of tax incentives, European decline, political headwinds, and new car failures as a "set." Additionally, there is notable interest in Tesla's move to provide consensus information on IR, digesting it more as a "stock event." Reddit

What Happens Next?—The "Way to Win in EVs" Has Changed

The EV market pioneered by Tesla has now entered a mature phase where "mass production, pricing, and supply networks" matter. For Tesla to regain momentum, it will likely need to simultaneously pursue (1) product refresh and price range redesign, (2) repair of brand damage, and (3) adaptation to regional regulations and tax systems. martinique.franceantilles.fr

On the other hand, BYD will be tested on how well it can establish an "operational system that can win overseas" amid intensifying domestic competition and trade risks resembling a containment strategy against China. The change of thrones is not the goal but the start of the next endurance race. martinique.franceantilles.fr