Tesla's 2025 | Narrative Vs Numbers

Tesla delivered 1.64 million vehicles in 2025, marking a 9% year-over-year decline and its second consecutive year of falling sales. China's BYD surpassed Tesla with 2.26 million battery electric vehicles sold, representing 28% growth. Despite weakening fundamentals in its core automotive business, Tesla's valuation remains anchored to its AI and robotics ambitions rather than current vehicle sales. The company faces headwinds from expired U.S. tax credits, declining European demand, and intensifying Chinese competition, while betting its future on autonomous vehicles and humanoid robots that remain pre-revenue.