Elon Musk’s politics hurt Tesla’s millions of dollars in U.S. car sales: Yale study
Since acquiring Twitter (now X) in 2022, Tesla CEO Elon Musk’s political presence has caused Tesla’s U.S. car sales to drop by more than 1 million vehicles, according to a Yale University study.
Chinese car giant BYD will overtake Tesla as the world’s top electric vehicle seller in 2025, according to new data released by the two companies.
Chinese automakers have come a long way since 2011, when Tesla CEO Elon Musk said in a Bloomberg TV interview that “I don’t think they have a great product,” dismissed BYD as a competitor and added that the company should focus on “not going out of business in China.” More than a decade later, in 2025, BYD outperformed Tesla even though EVs are not available for retail purchase in the US and China remains a key market for Tesla.
Global EV sales rose about 28% last year, with BYD reporting it sold about 2.26 million EVs, driven in part by growth in Europe, which widened the gap with Tesla. Meanwhile, the American automaker’s final quarterly earnings report showed annual sales declined for the second consecutive year. Tesla’s vehicle deliveries decreased from 1.79 million in 2024 to 1.64 million.
Increasing competition, the expiration of a $7,500 federal tax credit for EV buyers, and consumer backlash as Mr. Musk became the face of the Department of Efficiency have made 2025 a challenging year for Tesla.
Still, Tesla stock rose about 11.4% in 2025, increasing Musk’s wealth. After Tesla released its final quarterly earnings report on January 2, Tesla shares were down 1.2% by afternoon, while BYD shares were up about 5%.
Contributed by: Reuters
Contact Rachel Barber at rbarber@usatoday.com and follow her at X @rachelbarber_
