While their billionaire owner was off on his political gap year, getting involved with right-wing causes across the planet, Tesla appears to have gravely suffered the consequences. The company has lost its crown as the world’s biggest electric vehicle seller, after it was overtaken by BYD.
Tesla overtaken by BYD as biggest EV seller
The Chinese firm have enjoyed a meteoric rise in recent years, and their surge has taken place at the same time as Tesla’s slump. As the former’s sales increased by almost 8% in the last 12 months, the latter’s plummeted by more than 9% – and it marks a worrying trend for Mr. Musk.
This is the second consecutive year in which Tesla sales have declined. Though the margins were more modest in 2024, the drop in 2025 is much more pronounced. And, unfortunately for the billionaire-backed manufacturer, it seems most of the damage was self-inflicted by their CEO.
Elon Musk ‘political association’ blamed for slump in Tesla sales
Industry experts at Electrive have analysed the numbers. Alongside changes to tax credit rules in the US, they point to Elon Musk and his political engagements as ‘one of the main reasons’ for poor performance in 2025, citing ‘reputational damage’ in his support for Donald Trump.
“[One of the] main reasons for this decline is the controversial political activities of CEO Elon Musk, who spent several months in 2025 as a cost-cutting advisor to the Trump administration. His reputational damage as a supporter of Trump’s campaign further exacerbated the situation.” | Electrive
And, to top it all off, DOGE crashed and burned…
Musk’s role as a government efficiency tsar deepened his unpopularity with the electorate, after he deployed his ‘slash and burn’ strategy to public services. Thousands of state employees were dismissed, leaving gaping holes in key departments – and DOGE failed in its cost-cutting mission.
Figures released last month, and reviewed by the CATO Institute, show the extent of US government spending over the course of 2025. It reveals a near 6% increase federal costs, with an additional $248 billion lashed on to the public slate.
Further research also suggests that the cost of employing contractors to fill the gaps left by these mass firings outweighed any other economic benefits of trimming the wage bill. It’s not exactly the galaxy-brained delivery Americans – or even Tesla stakeholders – were hoping for…