Tesla’s global performance continued to slide in 2025, marking a second consecutive year of declining production and deliveries. While the Model Y remains Tesla’s best-selling vehicle worldwide, mounting political pressure, reduced incentives, and disappointing Cybertruck sales have weakened the brand’s position—particularly in Canada and Europe. Meanwhile, BYD has firmly taken the global EV lead, even without being sold in North America.
· Global sales down 8.6%
· The Model Y remains the most popular
· The Cybertruck confirmed as a commercial failure
Global Context: A Difficult Year for Tesla
The global automotive environment in 2025 proved challenging for Tesla. Political controversies surrounding CEO Elon Musk, combined with widespread reductions in government EV incentives, weighed heavily on the brand’s performance. This slowdown occurred despite strong momentum in the global electric vehicle market, especially in Europe, where EV sales rose by more than 25%.
Tesla Model X | Photo: TeslaBy year’s end, China’s BYD had clearly overtaken Tesla as the world’s leading EV manufacturer.
Tesla Global Production and Deliveries Down Again
From January to December 2025, Tesla recorded another year-over-year decline in both production and deliveries, confirming a troubling trend.
Global deliveries fell by 8.6% compared to 2024, while total production declined by 6.7%. This marks the second straight year of contraction for the automaker.
| Models | Production 2025 | Production 2024 | % 25/24 | Deliveries 2025 | Deliveries 2024 | % 25/24 |
|---|---|---|---|---|---|---|
| Model 3/Y | 1,600,767 | 1,679,338 | -4.7 | 1,585,279 | 1,704,093 | -7 |
| Other Models | 53,9 | 94,105 | -42.7 | 50,85 | 85,133 | -40.3 |
| Total | 1,654,667 | 1,773,443 | -6.7 | 1,636,129 | 1,789,226 | -8.6 |
Despite these results, the Tesla Model Y retained its position as the brand’s most popular vehicle globally, continuing to anchor Tesla’s sales volume. To help the sales in 2026, the new “base” version will join the Model Y and Model 3 line-ups.
2026 Tesla Model Y Standard | Photo: TeslaCybertruck Struggles Weigh on Results
Tesla’s “Other Models” category—which includes the Cybertruck, Model S, and Model X—suffered the steepest declines in both production and sales. Among them, the Cybertruck stands out as a major disappointment, with volumes falling far short of original expectations. Initially, Tesla planned to produce up to 250 000 Cybertruck annually, sale are not even reaching the fifth of it.
2025 Tesla CybertruckInitially positioned as a breakthrough product for the North American market, the Cybertruck’s underperformance has become a drag on Tesla’s broader lineup, particularly in the United States and Canada.
BYD Becomes the Global EV Leader
The year 2025 marked a symbolic turning point in the global EV race. BYD delivered 2,256,714 units worldwide, surpassing Tesla on both production and sales.
This milestone reflects not only BYD’s aggressive expansion strategy, but also Tesla’s growing vulnerability in an increasingly competitive global EV market.
BYD Seagull | Photo: BYDLong-Term Perspective: Still a Strong Producer, But Losing Ground
Despite the downturn, Tesla’s long-term production growth remains impressive. Over the past decade, the company evolved from a startup into a major force in the global automotive industry, particularly in EV technology and software integration.
| TESLA | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|---|
| Model 3/Y | 1,600,767 | 1,679,338 | 1,775,159 | 1,298,434 | 906,032 | 454,932 |
| Others | 53,9 | 94,105 | 70,826 | 71,177 | 24,39 | 54,805 |
| Total TESLA Production | 1,654,667 | 1,773,443 | 1,845,985 | 1,369,611 | 930,422 | 509,737 |
Even with declining volumes, 2025 still ranks as Tesla’s third-best production year on record. However, the decline translated into a loss of market share at a time when the global battery-electric vehicle market continues to expand rapidly.
Europe and the United States: Pressure on Core Markets
In Europe, Tesla faced intensified competition and a less favourable political climate in 2025. While full-year data is still pending, cumulative sales across the European Union, EFTA, and the United Kingdom fell by 28% between January and November, totalling 203,382 units. Over the same period, the European battery-electric vehicle market grew by 27%, reaching 2,276,161 registrations.
In the United States, regulatory changes and adjustments to EV incentive programs further impacted Tesla’s performance. These challenges were compounded by unmet expectations surrounding new products—most notably the Cybertruck.
Tesla in Canada: A Sharp Decline in 2025
Tesla’s situation in Canada deteriorated significantly in 2025. New vehicle sales and registrations dropped sharply compared to 2024, with an estimated 67% decline nationwide during the first half of the year. The collapse was even more pronounced in Quebec.
2026 Tesla Model 3 Standard | Photo: TeslaTwo key factors explain this downturn: the reduction of Quebec’s provincial EV incentive from $7,000 to $4,000, and growing political backlash linked to Elon Musk’s public role in U.S. politics.
While full-year Canadian sales figures have yet to be released, current trends point to a clear contraction of Tesla’s market presence in Canada, particularly in Quebec.
