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The U.S. electric vehicle (EV) market is expected to have a tougher 2026, with a forecast 15% contraction in annual passenger EV sales. Meanwhile, overall vehicle sales are projected to decline 2.4% to 16.9 million units. Data also shows that EV ownership among U.S. households slipped to 5% in 2025 from 6% in 2023, suggesting the early push into electric and hybrid vehicles may be losing speed.
That slower backdrop is showing up in Tesla’s (TSLA) latest results. Revenue for the fourth quarter came in at $24.9 billion, down 3% year-over-year (YOY). Tesla also gave up its spot as the world’s largest EV maker to Chinese rival BYD (BYDDY), which sold 2.26 million EVs in 2025.