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Tesla loses title as world's biggest electric vehicle maker as sales fall for second year in a row

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Tesla loses title as world's biggest electric vehicle maker as sales fall for second year in a row
News

News

Tesla loses title as world's biggest electric vehicle maker as sales fall for second year in a row

2026-01-03 06:12 Last Updated At:12:29

NEW YORK (AP) — Tesla lost its crown as the world’s bestselling electric vehicle maker on Friday as a customer revolt over Elon Musk’s right-wing politics, expiring U.S. tax breaks for buyers and stiff overseas competition pushed sales down for a second year in a row.

Tesla said that it delivered 1.64 million vehicles in 2025, down 9% from a year earlier.

Chinese rival BYD, which sold 2.26 million vehicles last year, is now the biggest EV maker.

It's a stunning reversal for a car company whose rise once seemed unstoppable as it overtook traditional automakers with far more resources and helped make Musk the world's richest man. The sales drop came despite President Donald Trump's marketing effort early last year when he called a press conference to praise Musk as a “patriot” in front of Teslas lined up on the White House driveway, then announced he would be buying one, bucking presidential precedent to not endorse private company products.

For the fourth quarter, Tesla sales totaled 418,227, falling short of even the much reduced 440,000 target that analysts recently polled by FactSet had expected. Sales were hit hard by the expiration of a $7,500 tax credit for electric vehicle purchases that was phased out by the Trump administration at the end of September.

Tesla stock fell 2.6% to $438.07 on Friday.

Even with multiple issues buffeting the company, investors are betting that Tesla CEO Musk can deliver on his ambitions to make Tesla a leader in robotaxi services and get consumers to embrace humanoid robots that can perform basic tasks in homes and offices. Reflecting that optimism, the stock finished 2025 with a gain of approximately 11%.

The latest quarter was the first with sales of stripped-down versions of the Model Y and Model 3 that Musk unveiled in early October as part of an effort to revive sales. The new Model Y costs just under $40,000 while customers can buy the cheaper Model 3 for under $37,000. Those versions are expected to help Tesla compete with Chinese models in Europe and Asia.

For fourth-quarter earnings coming out in late January, analysts are expecting the company to post a 3% drop in sales and a nearly 40% drop in earnings per share, according to FactSet. Analysts expect the downward trend in sales and profits to eventually reverse itself as 2026 rolls along.

Musk said earlier last year that a “major rebound” in sales was underway, but investors were unruffled when that didn't pan out, choosing instead to focus on Musk's pivot to different parts of business. He has has been saying the future of the company lies with its driverless robotaxis service, its energy storage business and building robots for the home and factory — and much less with car sales.

Tesla started rolling out its robotaxi service in Austin in June, first with safety monitors in the cars to take over in case of trouble, then testing without them. The company hopes to roll out the service in several cities this year.

To do that successfully, it needs to take on rival Waymo, which has been operating autonomous taxis for years and has far more customers. It also will also have to contend with regulatory challenges. The company is under several federal safety investigations and other probes. In California, Tesla is at risk of temporarily losing its license to sell cars in the state after a judge there ruled it had misled customers about their safety.

“Regulatory is going to be a big issue,” said Wedbush Securities analyst Dan Ives, a well-known bull on the stock. “We're dealing with people's lives.”

Still, Ives said he expects Tesla's autonomous offerings will soon overcome any setbacks.

Musk has said he hopes software updates to his cars will enable hundreds of thousands of Tesla vehicles to operate autonomously with zero human intervention by the end of this year. The company is also planning to begin production of its AI-powered Cybercab with no steering wheel or pedals in 2026.

To keep Musk focused on the company, Tesla’s directors awarded Musk a potentially enormous new pay package that shareholders backed at the annual meeting in November.

Musk scored another huge windfall two weeks ago when the Delaware Supreme Court reversed a decision that deprived him of a $55 billion pay package that Tesla doled out in 2018.

This story has been corrected to show that BYD sold 2.26 million vehicles last year, not 2.26.

AP video journalist Mustakim Hasnath contributed to this report from London.

FILE - The Tesla logo is displayed at a Tesla dealership Thursday, Mar. 13, 2025, in Miami. (AP Photo/Lynne Sladky, File)

FILE - The Tesla logo is displayed at a Tesla dealership Thursday, Mar. 13, 2025, in Miami. (AP Photo/Lynne Sladky, File)

SIOUX FALLS, S.D. (AP) — Easter is around the corner, and it's time to start thinking about how to decorate your eggs.

Whether you're dying eggs for your table spread or planning to hide them for an egg hunt, it's important to follow food safety guidelines to minimize germs and maximize your egg quality.

Eggs are remarkably long lasting, so there needn't be a giant rush to eat them.

“Stores usually do turn over eggs pretty quickly, so the recommendations is you should consume eggs three to five weeks after you purchase them,” said Kara Lynch, food safety educator with Michigan State University Extension.

There is also a benefit in letting eggs age just a bit, as older eggs can be easier to peel. That's because eggs shrink over time within the shell, creating an air pocket between the egg and the shell.

Egg processors clean eggs before they reach store shelves, but it also is important to thoroughly cook eggs to reduce the risk of foodborne illness, especially salmonella. That bacteria lives naturally in the gastrointestinal and reproductive tracts of chickens, said Kimberly Baker, associate extension specialist at Clemson University.

To cook your eggs, place them in a saucepan, fill it with water and bring it to a boil. After that, put the lid on, turn the heat off and let it sit for about 12 minutes. Some also favor turning down the heat and simmering eggs.

You can vary the time in the hot water depending on a desire for harder boiled or slightly creamier eggs, but the yolk should be pretty solid to be safe. Boiling them for too long can risk creating green sulfur development on the outside of the yolk.

After that, Don Schaffner, food science department chair at Rutgers University, said there are two options.

You can run your eggs under cold water to reduce the temperature. From there, you can color them right away or place them back in the fridge until you're ready. Or, after you've boiled them, you can let them air dry until they've cooled.

The boiling process sanitizes the eggs, and as long as they are kept out of water, Schaffner said, they will remain safe to eat.

“You’ve boiled the egg, you’ve gotten rid of any bacteria that might be in the egg. And now you’ve air-cooled it, right? So it’s going to cool more slowly, it’s probably going to cook more,” he said. “But most importantly, you don’t have to worry about any bacteria from the water getting internalized into the egg.”

Either artificial or natural food dye is OK as long as the dye label says it's food grade. For those keeping track, the U.S. Food and Drug Administration has been updating its guidance and regulations regarding certain dyes.

And no, it's not a problem if the dye seeps through the shell.

“Eggs kind of naturally have their own abilities to absorb only so much,” Baker said.

As you're decorating the eggs and have the eggs outside, she suggested keeping your eggs in an ice bath, so they can stay at a cooler temperature while you're decorating.

Eggs should generally be kept at or below 40 degrees (4.4 degrees Celsius) to minimize the risk of contaminants.

Cooked eggs that weren't air-cooled should spend no more than two hours at room temperature. And that's cumulative, including the time spent decorating and the time spent hiding during the Easter egg hunt.

But if it's particularly warm, then that two-hour rule may be shortened to one hour, Lynch said.

Hard boiled eggs are generally good for about a week in the fridge.

Be careful with your eggs as you handle them.

One of the biggest concerns is making sure your eggs haven't cracked during an Easter egg hunt, making them vulnerable to contaminants. And once the egg has been hard boiled, there's no way to kill bacteria that get inside, Baker said.

“We don’t want to be putting them in the soil or in lawns where pets have gone to the bathroom,” she said.

Whether the eggs are hidden outdoors or in a corner of your home, you should rinse them in cool water before you peel them. And wash your hands, too, just in case the eggs have picked up something.

If the Easter egg hunt means your eggs will be at room temperature for longer than two hours, experts recommended using plastic eggs for the hunt instead of real ones to minimize food safety risk.

“If it’s an outdoor Easter egg hunt at any time, I would say go with the plastic eggs and be safe,” Baker said. “And use your dyed Easter eggs as your centerpiece on your table or your buffet, and enjoy them that way.”

FILE - Painted Easter eggs hang from an Easter Tree in Saalfeld, central Germany, March 30, 2018. (AP Photo/Jens Meyer, File)

FILE - Painted Easter eggs hang from an Easter Tree in Saalfeld, central Germany, March 30, 2018. (AP Photo/Jens Meyer, File)

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