2025 EV Sales: BYD Overtakes Tesla

China’s BYD has overtaken Tesla to become the world’s top electric vehicle seller, pushing past the American carmaker in annual global sales. BYD sold 2.26 million battery electric vehicles over the year, comfortably ahead of Tesla’s 1.63 million deliveries. The milestone is notable given that Elon Musk had once publicly dismissed BYD in a 2011 interview.

Tesla, meanwhile, closed the year on a weak note. The company delivered 418,200 vehicles in the final quarter, missing analysts’ expectations and marking a 9% drop in annual sales compared to 2024. Demand also slipped sharply in the last three months of 2025, with sales falling 16% as competition from cheaper Chinese electric cars intensified. Brands such as BYD, Geely and MG undercut Western rivals on price, adding pressure on Tesla’s core markets.

The US automaker also faced headwinds at home. Government subsidies for electric vehicles were withdrawn, and Tesla dealt with consumer backlash linked to Elon Musk’s political positions. Although the company rolled out cheaper versions of its top-selling models in October to revive demand, the year remained challenging, raising questions among investors about Tesla’s direction amid growing global competition.