Tesla Stock Under Pressure as BYD Profit Slumps 19% and Q1 Deliveries Dip
BYD’s net profit dropped 19% to 32.6 billion yuan in 2025 despite record 804 billion yuan revenue and 2.26m sales, overtaking Tesla’s 1.64m deliveries as price wars erode margins. Tesla faces projected Q1 deliveries of 345k-370k units and delayed Model 3 China refresh as US demand wanes post tax-credit expiration.
1. BYD Posts First Profit Drop Since 2021
Chinese EV giant BYD reported a 19% decline in net profit to 32.6 billion yuan in 2025, its first drop since 2021, despite a record 804 billion yuan in revenue and 2.26 million vehicle sales. The company surpassed Tesla’s 1.64 million deliveries last year but faces margin pressure from an aggressive domestic price war and scaled-back government subsidies.
2. Tesla Q1 Delivery Forecasts Signal Sluggish Demand
Analysts project Tesla will deliver between 345,000 and 370,000 vehicles in Q1, down from 418,227 in Q4 2025 and roughly flat with Q1 2025’s 336,681 units, reflecting waning US demand after federal tax credits expired. UBS’s cautious 345,000-unit estimate underscores concerns over Tesla’s near-term growth in traditional car sales as the company pivots toward robotaxi and AI initiatives.
3. Model 3 China Refresh Delayed Weighs on Shares
Tesla has postponed the launch of its refreshed Model 3 in China, its largest EV market, triggering a pullback in shares that had gained earlier in the week. Enthusiasm around a potential SpaceX IPO and optimistic sales estimates proved insufficient to counter investor worries about near-term auto delivery trends.