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Tesla's Sales Plunge 16% Amid Tax Credit Cuts

1/8/2026

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Story summary
  • The elimination of federal tax credits under U.S. President Donald Trump led to a 16% drop in Tesla's Q4 2025 EV sales.
  • Tesla, the largest U.S. EV maker, sold fewer cars than China's BYD, which sold 2.26 million vehicles.
  • Tesla's focus on self-driving technology and humanoid robots may hinder its recovery.
  • Analysts warn that the policy shift could signal a broader slowdown for U.S. EVs, crucial for climate goals.