Elon Musk’s Tesla has lost its position as the world’s leading electric vehicle manufacturer to China’s BYD.
This comes after Tesla’s annual sale fell for a second consecutive year due to stronger competition, end of US tax credits and damage to its brand, as per Reuters.
BYD sold more vehicles than Tesla for the first time in a full year.
Tesla has faced these challenges even as Tesla focuses on futuristic projects like robotics and self-driving cars to support its high market value.
“I think the market remains focused on the robotaxi business, where Tesla is testing its Cybercab in Austin,” said Seth Goldstein, senior equity research analyst at Morningstar.
“If deliveries can continue to not be down too much in the coming quarters, I expect market sentiment around the robotaxi will continue to drive the stock,” Goldstein added.
Tesla’s fourth-quarter sales fell after a third-quarter boost from a rush to use US EV tax credits before they expired.
From October to December, Tesla delivered 418,227 vehicles, down 15.6% from the previous year.
While, for the whole year, Tesla delivered 1.64 million cars, less than 1.79 million in the previous year, marking the second year in a row that the company’s annual deliveries have declined.