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Elon Musk promised a ‘major rebound’ for Tesla in 2025. Instead it fell behind its biggest rival from China

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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.

Musk could become the world’s first trillionaire later this year when he sells shares of his rocket company SpaceX to the public for the first time in what analysts expect would be a blockbuster initial public offering.

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



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Iran threatens U.S. and Israel as protests enter third week

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Tehran warned the US and Israel against any intervention over nationwide protests in Iran while it sought to placate its citizens, as demonstrations entered their third week and fatalities mounted. 

Saturday marked the third night of intensified nationwide demonstrations, following calls by Reza Pahlavi, the exiled son of Iran’s former shah, to seize city centers and stage strikes. Since the unrests first began on Dec. 28, Donald Trump has repeatedly warned the Iranian regime not to fire on demonstrators, with the US president receiving a briefing in recent days on new options for military strikes.

The Oslo-based Iran Human Rights group said on Sunday it had confirmed the deaths of at least 192 protesters, including nine individuals under 18. Separately, the US-based Human Rights Activists News Agency said deaths linked to the recent unrest had reached 116, with most killed by live ammunition or pellet gunfire. 

On Sunday, Iran’s President Masoud Pezeshkian struck a conciliatory tone in a state TV interview, offering condolences to families affected by the “tragic consequences” of the unrest.

“Your protests must be heard, and we must address your concerns. Let’s sit down together, hand in hand, and solve the problems,” he said, without offering details on how that would be done. “I promise the dear people, perhaps ninety percent of whom have concerns, that we will address their worries. We will get through this crisis.”

Still, Pezeshkian accused the US and Israel of bringing in “terrorists from abroad,” whom he claimed had set mosques and markets on fire, “beheaded some, and burned others alive.” Other officials took an even harder line. 

“In the event of a US military attack, both the occupied territories and US military and shipping centers will be legitimate targets for us,” Iran Parliament Speaker Mohammad Bagher Ghalibaf said in remarks broadcast on state television earlier on Sunday. 

He reiterated a warning that Iran could act preemptively against potential threats. “Within the framework of legitimate self-defense, we do not limit ourselves to responding only after an attack,” he said.

Trump has been briefed in recent days on a range of options for military strikes in Iran, including nonmilitary sites, a White House official said, confirming an earlier New York Times report. The US president is seriously considering authorizing an attack, according to the official.

Israel’s Army Radio reported Sunday that the country’s security establishment views it as unlikely that Iran will attack Israel at this stage. “No such immediate willingness is identified in Israel — but rather an Iranian focus on internal matters,” it said, citing unidentified defense officials. 

Footage from Iranian cities suggests that hundreds of thousands, including many elderly, are defying stern warnings from authorities to stay off the streets, despite a nationwide internet blackout and severe telecommunications restrictions that have blocked calls and text messages since Thursday.

The NetBlocks internet‑monitoring group said in a posting on X early Sunday that internet connectivity in Iran “continues to flatline around 1% of ordinary levels.”

Still, multiple social media videos, reportedly from a warehouse in southern Tehran, show people searching through dozens of corpses in body bags, lined up on the ground and on stretchers. Wailing can be heard as individuals bend over the bags, trying to identify their loved ones.

A video published later on Sunday by the state-run IRIB News appeared to show scenes from the same warehouse — one of the first glimpses by official media into the scale of the fatalities. In the video, a reporter described the site as a complex of the state forensic organization in Tehran, with dozens of bodies inside a large indoor facility. Outside, dozens of people are seen huddling around ambulances and the back of what appears to be a refrigerated truck, searching for their relatives.

Protests erupted last month among pockets of traders in Tehran over worsening economic and living conditions but have since grown into the largest anti-regime demonstrations to grip the country since 2022, when the death in custody of Mahsa Amini triggered nationwide anger and mass protests.

Read more: How Sanctions and a Currency Crash Fueled Iran Unrest: QuickTake

Other videos, reportedly from west of Tehran on Saturday night, show thousands of protesters packed into the streets, waving phone flashlights in the dark as city lights remain shut down, amid whistles and chants of “Death to the dictator.” A truck was seen on fire in Mashhad, while footage purportedly from Sunday shows a state tax administration building burned out overnight in eastern Tehran. Bloomberg couldn’t independently verify any of the footage. 

In an X post on Sunday, Pahlavi urged protesters to continue their demonstrations through the weekend. He described Trump as “the leader of the free world” who is observing the unrest and “is ready to help you.”

Late on Saturday, Iran’s Foreign Minister Abbas Araghchi accused the US and Israel of fueling violent unrest and warned against any action directed at Tehran.

“The only ‘delusional’ aspect of the current situation is the belief that arson does not ultimately burn the arsonists,” Araghchi said.

Alongside those killed, another 2,638 people had been detained, the Human Rights Activists organization said. Some of those killed included medical personnel, and seven of the victims were under 18, it added.

Iran’s prosecutor general warned on Saturday of swift trials and death penalty charges against detainees, a day after Supreme Leader Ayatollah Ali Khamenei said the security apparatus won’t tolerate “vandalism” or “people acting as mercenaries for foreign powers.”



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Florida man who grabbed Nancy Pelosi’s podium during Capitol riot runs for county office

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A man who grabbed then-House Speaker Nancy Pelosi’s podium and posed with it for photographs during the U.S. Capitol riot is running for county office in Florida.

Adam Johnson filed to run as a Republican for an at-large seat on the Manatee County Commission on Tuesday. That was the fifth anniversary of the Jan. 6 riot, where he was photographed smiling and waving as he carried Pelosi’s podium after the pro-Trump mob’s attack on Jan. 6, 2021.

Johnson told WWSB-TV that it was “not a coincidence” that he filed for office on Jan. 6, saying “it’s definitely good for getting the buzz out there.” His campaign logo is an outline of the viral photograph of him carrying the podium.

He’s far from the first person implicated in the Jan. 6 riot to run for office. At least three ran unsuccessfully for Congress in 2024 as Republicans. And there are signs that the Republican Party is welcoming back more people who were convicted of Jan. 6 offenses after Trump pardoned them.

Jake Lang, who was charged with assaulting an officer, civil disorder and other crimes before he was pardoned, recently announced he is running for Secretary of State Marco Rubio’s vacant U.S. Senate seat in Florida.

Johnson placed the podium in the center of the Capitol Rotunda, posed for pictures and pretended to make a speech, prosecutors said. He pleaded guilty in 2021 of entering and remaining in a restricted building or ground, a misdemeanor that he equated to “jaywalking” in the interview.

“I think I exercised my First Amendment right to speak and protest,” Johnson said.

After driving home, Johnson bragged that he “broke the internet” and was “finally famous,” prosecutors said.

Johnson served 75 days in prison followed by one year of supervised release. The judge also ordered Johnson to pay a $5,000 fine and perform 200 hours of community service.

Johnson told U.S. District Judge Reggie Walton at sentencing that posing with Pelosi’s podium was a “very stupid idea” but now says he only regrets his action because of the prison sentence.

“I walked into a building, I took a picture with a piece of furniture, and I left,” he now says.

Four other Republicans have filed to run so far in the Aug. 18 primary in what’s a deeply Republican county. The incumbent isn’t seeking reelection.

In March 2025, Johnson filed a lawsuit against Manatee County and six of its commissioners, objecting to the county’s decision not to seek attorney’s fees from someone who sued the county and dropped the lawsuit. The county has called Johnson’s claims “completely meritless and unsupported by law.”

Johnson said he objects to high property taxes and overdevelopment in the county south of Tampa, claiming current county leaders are wasteful.

“I will be more heavily scrutinized than any other candidate who is running in this race,” Johnson said. “This is a positive and a good takeaway for every single citizen, because for once in our life, we will know our local politicians who are doing things.”



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‘We don’t want to be Americans, we don’t want to be Danes, we want to be Greenlanders’: Local politicians reject Trump

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Greenland’s party leaders have rejected President Donald Trump’s repeated calls for the U.S. to take control of the island, saying that Greenland’s future must be decided by its people.

“We don’t want to be Americans, we don’t want to be Danes, we want to be Greenlanders,” Greenland Prime Minister Jens-Frederik Nielsen and four party leaders said in a statement Friday night.

Trump said again on Friday that he would like to make a deal to acquire Greenland, a semiautonomous region that’s part of NATO ally Denmark, “the easy way.” He said that if the U.S. doesn’t own it, then Russia or China will take it over, and the U.S. does not want them as neighbors.

“If we don’t do it the easy way, we’re going to do it the hard way,” Trump said, without explaining what that entailed. The White House said it is considering a range of options, including using military force, to acquire the island.

Greenland’s party leaders reiterated that “Greenland’s future must be decided by the Greenlandic people.”

“As Greenlandic party leaders, we would like to emphasize once again our wish that the United States’ contempt for our country ends,” the statement said.

Officials from Denmark, Greenland and the United States met Thursday in Washington and will meet again next week to discuss the renewed push by the White House for the control of the island.

Danish Prime Minister Mette Frederiksen has warned that an American takeover of Greenland would mark the end of NATO.

The party leaders’ statement said that “the work on Greenland’s future takes place in dialogue with the Greenlandic people and is prepared on the basis of international laws.”

“No other country can interfere in this,” they said. “We must decide the future of our country ourselves, without pressure for quick decision, delay or interference from other countries.”

The statement was signed by Nielsen, Pele Broberg, Múte B. Egede, Aleqa Hammond and Aqqalu C. Jerimiassen.

While Greenland is the largest island in the world, it has a population of around 57,000 and doesn’t have its own military. Defense is provided by Denmark, whose military is dwarfed by that of the U.S.

It’s unclear how the remaining NATO members would respond if the U.S. decided to forcibly take control of the island or if they would come to Denmark’s aid.

This story was originally featured on Fortune.com



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