WSJ Tech News Briefing: TNB Tech Minute — Tesla Sales Drop for Second Year in a Row

Date: January 2, 2026
Host: Julie Chang, Wall Street Journal

Overview

In this episode of the WSJ Tech News Briefing, Julie Chang provides a rapid-fire summary of major tech business developments as the new year begins. The spotlight is on Tesla’s declining sales for the second consecutive year, with a focus on shifting global EV market dynamics and the corresponding rise of Chinese competitors, particularly BYD. The briefing also covers Baidu’s move to list its AI chip unit on the Hong Kong Stock Exchange, reflecting the continued AI-driven transformation of the tech landscape.

Key Discussion Points and Insights

1. Tesla's Sales Drop

• Context: Tesla vehicle sales dropped for the second year in a row, reflecting disruptions in the EV market landscape.
• Stats:
  • Sales were down 9% for 2025.
  • In Q4, sales dropped 16% compared to the previous year.
  • Tesla delivered over 418,000 vehicles in the final quarter, below analyst projections.
• Causation: The end of federal subsidies is named as a disruptor, altering consumer behavior and market demand.
• Quote:

  “Tesla vehicle sales fell for the second year in a row. The electric vehicle maker has been adjusting to a shopping landscape disrupted by the end of federal subsidies.” — Julie Chang, [00:21]

2. EV Market Shakeup: Rise of BYD

• Chinese Competition: BYD overtakes Tesla as the world's largest EV seller despite its own slowed growth due to competition within China.
• Stats:
  • BYD sold over 420,000 units in December 2025, despite an 18% drop year-over-year for the month.
  • Annual sales for BYD rose 7.7% in 2025, much lower than its 41% growth in 2024.
• Significance: Demonstrates the shifting landscape of global EV dominance, with Chinese firms both surging and facing internal market pressures.
• Quote:

  “That set the stage for BYD to dethrone Elon Musk’s company as the world’s biggest seller of EVs, even though the Chinese automaker reported slowed growth in 2025 amid intensified competition in China.” — Julie Chang, [00:38]

3. Baidu's AI Chip Unit Hong Kong IPO Filing

• Action: Baidu’s AI chip business files confidentially for a Hong Kong Stock Exchange listing.
• Strategic Background:
  • The move is prompted by Baidu’s need to find growth as its advertising revenues stagnate.
  • Heavy investments are being made in chip development, core AI, and self-driving tech.
• Industry Context: The IPO comes amid a “surge of AI-related listings in Hong Kong,” indicating a market trend and investor enthusiasm around AI technologies in the Asian financial markets.
• Quote:

  “Baidu has been facing pressure on both its top and bottom lines as its main advertising business slows. The company has been investing heavily in fields such as chip development, AI, and self driving technology as it seeks new avenues for growth.” — Julie Chang, [01:24]

Notable Quotes & Memorable Moments

• Disruption in EV Sales:

  “The electric vehicle maker has been adjusting to a shopping landscape disrupted by the end of federal subsidies.” — Julie Chang, [00:25]

• Market Leadership Shift:

  “That set the stage for BYD to dethrone Elon Musk’s company as the world’s biggest seller of EVs…” — Julie Chang, [00:38]

• AI Mania in Hong Kong:

  “The filing comes amid a surge of AI-related listings in Hong Kong.” — Julie Chang, [01:36]

Important Segment Timestamps

• [00:00] — Introduction & Host greeting
• [00:21] — Tesla’s 2025 sales performance and impact of federal subsidy expiration
• [00:38] — BYD overtakes Tesla as global EV leader; BYD’s and Tesla’s respective sales numbers
• [01:14] — Baidu AI chip unit's Hong Kong IPO filing; broader AI market context
• [01:36] — Wrap-up and mention of the afternoon update

Conclusion

This Tech Minute captures the fast-changing realities of the EV and AI sectors as 2026 begins. A double-digit slump for Tesla—spurred by the withdrawal of federal support—paves the way for BYD’s global lead, even as both companies face unique headwinds. Meanwhile, Baidu demonstrates the growing centrality of AI in Asia’s tech economy by taking its chip ambitions to public markets. The episode provides concise, data-driven commentary on trends at the intersection of technology, policy, and global competition.