After ten years as the global electric vehicle leader, Tesla was overtaken by China’s BYD in 2025. Tesla delivered 1.64 million fully electric vehicles last year, a 9% decline from 2024, while BYD recorded sales of 2.26 million units, up 28% year-on-year. BYD’s growth was driven by aggressive launches in Europe and Southeast Asia, where its entry-level models undercut Tesla’s pricing. The shift reflects intensifying competition from Chinese manufacturers and the removal of U.S. federal tax credits, which had previously buoyed Tesla’s domestic deliveries.

Greenbush Financial Group increased its Tesla position by 9.5% in the third quarter, adding 1,160 shares to reach 13,348 shares, representing 2.3% of its portfolio and a holding value of $5.94 million. Coastline Trust more than doubled its stake with a 105.1% increase to 203 shares, while RB Capital Management and Daner Wealth Management raised their holdings by 1.9% and 11.5%, respectively. Financial Consulate initiated a new $1.08 million position, and Salomon & Ludwin expanded its exposure by 62.6% to 2,940 shares. Hedge funds and institutions now own roughly two-thirds of Tesla’s stock.

Tesla reported Q4 deliveries of 418,227 vehicles, down 16% from 490,570 in Q4 2024 and missing Wall Street’s consensus of approximately 426,000. Production totaled 434,358 units, marking a 5.5% year-on-year decrease. Full-year deliveries fell 8.6% to 1.64 million vehicles. U.S. EV market share slipped below 6% in October following the expiration of the $7,500 tax credit, squeezing demand and accelerating the shift of sales into earlier quarters. The decline prompted a 2.6% drop in Tesla’s share performance on the first trading day of 2026.

Wall Street’s sentiment has turned cautious, with 32 analysts issuing a consensus “Hold” rating and an average 12-month target implying just over 10% downside. Morgan Stanley, Truist and Deutsche Bank maintained neutral or hold ratings, while Wedbush remains the sole standout with an outperform view, forecasting upside from energy storage and robotaxi initiatives. Insiders reduced positions as Director Kimbal Musk sold 56,820 shares for $25.6 million and CFO Vaibhav Taneja sold 2,637 shares for $1.17 million, trimming their holdings by 3.9% and 16.1%, respectively. Insiders now control 19.9% of outstanding shares.