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Tesla Faces Decline as BYD Becomes Top EV Seller

2/23/2026

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Story summary
  • Tesla, Inc. sold about 40,100 U.S. vehicles in January 2026, a 17% year-over-year decline, signaling erosion of its market position.
  • The December 2025 four-year low frames the recent drop.
  • The expiration of the $7,500 EV tax credit contributed to rising prices and a 30% year-over-year drop in U.S. EV sales.
  • BYD surpassed Tesla as the world's largest EV seller.
  • Tesla discontinued the Model S and Model X after declining sales.