Summary
- BYD has officially overtaken Tesla as the world’s leading seller of electric vehicles, recording over 2.25 million battery-powered car sales in 2025, a nearly 28% increase from the previous year
- Tesla reported a 9% decline in annual sales with 1.64 million vehicles sold, marking its second consecutive year of falling deliveries and a significant 16% drop in the final quarter of 2025
- Analysts attribute Tesla’s slump to the expiration of a $7,500 USD federal tax credit, an aging product lineup, and consumer “unease” regarding Elon Musk’s political involvement, while Chinese rivals like BYD gained ground through more affordable pricing
BYD is officially the world’s top seller of electric vehicles (EVs), surpassing Elon Musk’s Tesla for the first time in history.
As per the BBC, sales for the Chinese automotive company’s battery-powered cars increased by almost 28% — selling over 2.25 million of these vehicles in 2025. BYD outsold Tesla by more than half a million units, with Musk’s company confirming a 9% decrease in sales with 1.64 million vehicles sold globally.
Tesla experienced a 16% drop in car sales during the last three months of 2025, partly due to the reversal of a $7,500 USD government subsidy that lessened the prices of select battery electric, plug-in hybrid or fuel cell vehicles.
2025 marks the second straight year that Tesla has experienced a drop in sales. The BBC notes that the company was hit with a “mixed reception” to its new models, “unease” regarding Musk’s political involvement and escalating competition from its Chinese rivals. These companies, including the likes of BYD, MG and Geely, have shifted the global landscape by pricing their vehicles below their Western counterparts’.
