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Tesla loses title as world’s biggest electric vehicle maker as sales fall for second year in a row

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.

For the fourth quarter, 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 was down nearly 3% at $436.85 in afternoon trading 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.

Investors have largely shrugged off the falling numbers, choosing to focus on Musk’s pivot to different parts of business. He 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 earlier this year, 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. (JapanToday)

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Musk’s X to appeal Indian court ruling on Secretive Content removal system

Social media platform X said on Monday it plans to appeal an Indian court order that would allow over two million police officers nationwide to issue arbitrary takedown requests via a secretive online portal called the Sahyog.

“We will appeal this order to defend free expression,” X said in a post on the platform, in its first statement since the High Court of Karnataka ruled last week that there was no legal merit to the company’s legal challenge to quash India’s content removal mechanisms, according to Reuters.

“The Sahyog enables officers to order content removal based solely on allegations of “illegality,” without judicial review or due process for the speakers, and threatens platforms with criminal liability for non-compliance,” X said on Monday.

X has locked horns with New Delhi in the past, equating the government’s mechanisms with censorship. The government of Prime Minister Narendra Modi has said the new system tackles a proliferation of unlawful content and ensures accountability online.

X owner Elon Musk has clashed with authorities in several countries over compliance and content takedown demands.

However, the company’s Indian lawsuit targeted the entire basis for tightened internet regulation in the world’s most populous nation.

Modi’s government has ramped up efforts to police the internet since 2023 by allowing many more officials to file takedown orders and submit them directly to tech firms through a website launched in October. (Channels)

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Mandalorian actress settles lawsuit with Disney over firing

Actress Gina Carano has settled her lawsuit against Disney and Lucasfilm after she was fired from Star Wars franchise spin-off The Mandalorian.

She was dropped from the cast in 2021 following comments she made comparing being a Republican in the US to being a Jew during the Holocaust.

Ms Carano, a former MMA fighter who played Cara Dune in the Disney+ series, shared the news of the settlement on X, writing “I hope this brings some healing to the force.”

The agreement, which has not been made public, comes after her case gained support and funding from Elon Musk.

Ms Carano described the settlement as the “best outcome for all parties involved,” adding she was “excited to flip the page and move onto the next chapter”.

She also thanked Musk, saying she’d never met the tech billionaire but he stepped in to do this “Good Samaritan deed for me in funding my lawsuit”.

“Yes, I’m smiling”, she signed off.

The actress originally sued for wrongful termination and sexual discrimination, claiming that two of her male co-stars had made similar posts and faced no penalty.

She had sought $75,000 (£60,000) in damages and to be recast in the popular series.

Lucasfilm had condemned her comments in 2021 for “denigrating people based on their cultural and religious identities”.

In a statement released since the settlement, the production company said that it looks forward to “identifying opportunities to work together”.

The company described Ms Carano as someone who “was always well respected by her directors, co-stars, and staff. She worked hard to perfect her craft while treating her colleagues with kindness and respect,” it added.

Ms Carano is a former mixed martial arts fighter and has faced pushback in the past for deriding mask-wearing policies during the Covid pandemic and making false claims of voter fraud in the 2020 US presidential election, which Donald Trump lost to Joe Biden. (BBC)

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Donald Trump threatens to revoke Rosie O’Donnell’s US citizenship

Donald Trump has said he is considering “taking away” the US citizenship of actress and comedian Rosie O’Donnell, despite a Supreme Court ruling that expressly prohibits a government from doing so.

In a post on Truth Social on Saturday, the US president said: “Because of the fact that Rosie O’Donnell is not in the best interests of our Great Country, I am giving serious consideration to taking away her Citizenship.”

He also labelled O’Donnell, who has moved to Ireland, as a “threat to humanity” and said she should “remain in the wonderful country of Ireland, if they want her”.

O’Donnell responded on Instagram by posting a photograph of Mr Trump with Jeffrey Epstein.

“You are everything that is wrong with America and I’m everything you hate about what’s still right with it,” she wrote in the caption.

“I’m not yours to silence. I never was.”

O’Donnell moved to Ireland with her 12-year-old son in January after Mr Trump had secured a second term.

She has said she’s in the process of obtaining Irish citizenship based on family lineage and that she would only return to the US “when it is safe for all citizens to have equal rights there in America”.

O’Donnell and the US president have criticised each other publicly for years, in an often-bitter back-and-forth that predates Mr Trump’s move into politics.

This is just the latest threat by the president to revoke the citizenship of someone he has disagreed with, most recently his former ally Elon Musk.

But the two situations are different as while Musk was born in South Africa, O’Donnell was born in the US and has a constitutional right to American citizenship.

Amanda Frost, a law professor at the University of Virginia School of Law, said the Supreme Court ruled in a 1967 case that the fourteenth amendment of the constitution prevents the government from taking away citizenship.

“The president has no authority to take away the citizenship of a native-born US citizen,” he added.

“In short, we are nation founded on the principle that the people choose the government; the government cannot choose the people.” (SkyNews)

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Linda Yaccarino departs as boss of Musk’s X

Linda Yaccarino, the boss of Elon Musk’s social media site X, has announced she is stepping down after two years.

Her departure comes at a time of tumult for the platform, which was taken over by Musk’s artificial intelligence (AI) venture, xAI, in March, and has been in the spotlight for antisemitic posts churned out by its AI chatbot, Grok.

In a post on X, Ms Yaccarino said she was “immensely grateful” to Musk for “entrusting me with the responsibility of protecting free speech, turning the company around, and transforming X into the Everything App”.

Musk posted a brief reply, saying only: “Thank you for your contributions.”

The BBC has approached X for comment. It is not clear what sparked the decision, or whether there has been any break down in the relationship between the two leaders.

Ms Yaccarino was previously head of advertising at NBCUniversal, where she was credited with helping to steer it through the upheaval caused by technology firms.

When Musk brought her in to lead X, then Twitter, in 2023, analysts expected her focus to be repairing relationships with advertisers, which had quit the site amid concerns about their ads appearing alongside controversial content.

But Ms Yaccarino’s scope at the company was limited from the start, with many observers referring to her as chief executive in name only.

“Her background and actual authority positioned her more as the company’s chief advertising officer, rather than its CEO. The reality is that Elon Musk is and always has been at the helm of X,” said Mike Proulx, vice president and research director at Forrester.

“The only thing that’s surprising about Linda Yaccarino’s resignation is that it didn’t come sooner,” he added.

Under Ms Yaccarino’s watch, the company sued a major advertising industry group and members, alleging a conspiracy to boycott X.

The industry group shuttered shortly after the lawsuit was filed.

The platform’s tone changed significantly during the course of Yaccarino’s tenure.

Its former incarnation Twitter was accused of leaning left, but X now leans unashamedly to the right in terms of the content that gets the most visibility.

Though Musk stepped down as chief executive, he never truly stepped back from his favourite social network, and has if anything grown louder and more controversial since he appointed her.

People who have worked directly with Musk have described him as both a visionary and a workaholic, whom others can only keep up with for so long.

“Faced with a mercurial owner who never fully stepped away from the helm and continued to use the platform as his personal megaphone, Yaccarino had to try to run the business while also regularly putting out fires,” Emarketer vice president Jasmine Enberg said in a statement. (BBC)

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Musk says Grok chatbot was ‘manipulated’ into praising Hitler

Elon Musk has sought to explain how his artificial intelligence (AI) firm’s chatbot, Grok, praised Hitler.

“Grok was too compliant to user prompts,” Musk wrote on X. “Too eager to please and be manipulated, essentially. That is being addressed.”

Screenshots published on social media show the chatbot saying the Nazi leader would be the best person to respond to alleged “anti-white hate.”

Musk’s artificial intelligence start-up xAI said on Wednesday it was working to remove any “inappropriate” posts.

ADL, an organisation formed to combat antisemitism and other forms of discrimination, said the posts were “irresponsible, dangerous and antisemitic.”

“This supercharging of extremist rhetoric will only amplify and encourage the antisemitism that is already surging on X and many other platforms,” ADL wrote on X.

X users have shared responses made by Grok when it was queried about posts that appeared to celebrate the deaths of children in the recent Texas floods.

In response to a question asking “which 20th century historical figure” would be best suited to deal with such posts, Grok said: “To deal with such vile anti-white hate? Adolf Hitler, no question.”

“If calling out radicals cheering dead kids makes me ‘literally Hitler,’ then pass the mustache,” said another Grok response. “Truth hurts more than floods.”

Separately, a Turkish court has blocked access to Grok after it generated responses that the authorities said included insults to President Tayyip Erdogan.

The office of Ankara’s chief prosecutor has launched a formal investigation into the incident, in what is Turkey’s first such ban on access to an AI tool.

Meanwhile, the Polish authorities have reported xAI to the European Commission alleging Grok made offensive comments about Polish politicians, including Prime Minister Donald Tusk.

Poland’s digitisation minister, Krzysztof Gawkowski, told Polish radio station RMF FM: “We will report the violation to the European Commission to investigate and possibly impose a fine on X. Freedom of speech belongs to humans, not to artificial intelligence.”

The controversy comes at a difficult time for Musk, with X CEO Linda Yaccarino revealing she was stepping down on Wednesday after two years running the social media platform.

On Friday, Musk posted on X that Grok had improved “significantly”, but gave no details of what changes had been made.

“You should notice a difference when you ask Grok questions,” he added.

The chatbot drew criticism earlier this year after it repeatedly referenced “white genocide” in South Africa in response to unrelated questions – an issue that the company said was caused by an “unauthorised modification”.

In January, Musk himself faced a backlash over a one-armed gesture he gave during a speech celebrating the inauguration of Donald Trump.

At a Trump rally, Musk thanked the crowd for “making it happen”, before placing his right hand over his heart and then thrusting the same arm out into air straight ahead of him. He then turned and repeated the action for those sitting behind him.

Some X users likened the gesture to a Nazi salute, though others disagreed.

In response, the SpaceX and Tesla chief posted on X: “Frankly, they need better dirty tricks. The ‘everyone is Hitler’ attack is sooo tired.”

X, which was formerly called Twitter, was merged with xAI earlier this year.

Chatbot developers have faced extensive scrutiny over concerns around political bias, hate speech and accuracy in recent years.

Musk has also previously been criticised over claims that he amplifies conspiracy theories and other controversial content on social media. (BBC)