Why Tesla Is Losing Ground Around the World: QuickTake

Tesla Inc. is facing a difficult road ahead after deliveries of its fully electric vehicles declined for a second year in a row and were overtaken by Chinese rival BYD Co. on an annual basis for the first time.

The US EV maker is struggling with heightened competition, the loss of federal purchase incentives in its home market, and backlash to the polarizing politics of Chief Executive Officer Elon Musk. Fundamentally, the company is lacking a truly new, affordable vehicle to revitalize its aging lineup.

Analysts have grown more skeptical about the outlook for sales in 2026. Nonetheless, investors ...