Economics in the News – Dec. 22, 2025 – Jan. 4, 2026
Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o Tesla’s car sales declined nine percent in 2025, as Chinese electric automaker BYD surpassed Tesla to become the world’s biggest seller of electric vehicles (EVs). Tesla remains the largest seller of EVs in the United States, but the company has shifted its focus toward self-driving technology. The EV tax credit of up to $7,500 was also eliminated by President Donald Trump’s administration.
By comparison, Tesla reported delivering 1.64 vehicles worldwide in 2025, compared to 2.26 vehicles delivered by BYD. While few Chinese EVs are sold in the United States due to high tariffs, BYD has a growing distribution throughout Asia, Europe, and Latin America. [The New York Times]
o FC Barcelona is one of the most iconic brands in sports. Its revenues reach nearly €1 billion per year. Despite amassing trophy after trophy in Europe, the soccer giant has accumulated a staggering amount of debt - €2.5 billion, making it the most indebted team in world soccer. The debt is largely due to financial mismanagement, astronomical expectations, and a stadium renovation project at famed Camp Nou.
Members, known as “socios”, pay an annual subscription of more than €200. They elect a group of leaders to run the club on their behalf, based on a near-political-style campaign. To meet its debt obligations, FC Barcelona’s club president, Joan Laporta, sold the rights to future revenues to outside investors, including 25 percent of its domestic TV rights for the next 25 years. [The New York Times]
o The United States attacked Venezuela, capturing its long-time President, Nicolas Maduro, and his wife, Cilia Flores. The US justified the mission by accusing Maduro of drug-running and questioning the legitimacy of his rule. President Donald Trump and his administration want to facilitate American energy companies’ access to the world’s largest oil reserves.
However, Chevron is currently the only major American oil company in Venezuela. Venezuela produced 900,000 barrels of oil a day in 2025, with Chevron accounting for a large portion of that. The Venezuelan government seized oil assets in the 1970s and 2000s. ExxonMobil and ConocoPhillips left Venezuela in 2007. Oil executives face difficult investment decisions. Is Venezuela stable enough for companies to return to the country and invest billions in rebuilding its infrastructure? [The Wall Street Journal]
o Warren Buffett officially stepped down as CEO of Berkshire Hathaway at the end of the 2025 calendar year and appointed Greg Abel to succeed him. Abel has managed Berkshire’s noninsurance businesses since 2018. Although Buffett is stepping down as CEO, his presence will still be felt as he remains chairman and plans to continue commuting to the office each day.
The ”Oracle of Omaha,” Buffett, is widely regarded as the world’s greatest investor, routinely beating the S&P 500 with his notorious buy-and-hold strategy. Buffett started buying Berkshire Hathaway shares at $7.60 per share in 1962, when the company was a struggling New England textile mill. Today, a single share of Berkshire Hathaway Class A stock sells for nearly $700,000. Buffett’s personal share of Berkshire Hathaway stock is worth more than $150 billion despite donating more than $60 billion to charities. [The Washington Post]
o Baby Boomers and Gen Xers who dealt with the challenges of caring for their aging parents are now taking steps to ensure that their children won’t experience the same difficulties. According to the National Alliance for Caregiving and AARP, 47 percent of family caregivers reported having planned ahead. That’s an increase of five percent in the last decade.
Due to rising costs and shortages in the professional caregiving industry, the number of family caregivers is on the rise. The median out-of-pocket monthly cost for a private nursing home room equaled $10,650, while the average price at an assisted living facility equaled $5,900. The cost and availability problems are expected to worsen by 2050 as the baby boomer population ages, with the number of Americans aged 65 and older projected to rise by 30 percent. [The Washington Post]
