BYD Surpasses Tesla as Leading Global EV Seller

In a historic shift in the electric vehicle market, China's BYD has surpassed Tesla to become the world's largest seller of electric vehicles (EVs), marking a significant milestone for the industry. For the first time, BYD has outpaced its American rival in annual sales.

Tesla's car sales dropped by nearly 9% in 2025 to 1.64 million vehicles sold worldwide, marking the company’s second consecutive year of declining car deliveries. In stark contrast, BYD reported that sales of its battery-powered vehicles surged by almost 28%, totaling over 2.25 million units sold last year.

This growing success for BYD comes amidst a tough year for Tesla, attributed to mixed reception of new models, concerns over Elon Musk's controversial political engagements, and heightening competition from Chinese manufacturers.

Specifically, Tesla saw a significant 16% drop in sales during the final quarter of 2025, largely because of the elimination of a government subsidy that had previously made electric vehicles more accessible to consumers. Analysts have recently lowered their projections for Tesla sales for 2026, indicating a less optimistic outlook for the company.

Compounding its challenges, Tesla has faced intense competition from several Chinese automakers, such as Geely and MG, who are pricing their vehicles aggressively to capture market share. In response, Tesla introduced lower-priced versions of its popular models in an attempt to rejuvenate sales.

Despite BYD's sales success, the company has seen its growth rate slow in 2025, experiencing the weakest increase in five years, primarily due to fierce competition in its home market of China. Nevertheless, BYD remains a formidable player, often undercutting competitors on pricing and expanding aggressively into markets in Latin America and Europe.

Notably, the UK has emerged as BYD's largest market outside China, with astonishing growth reported at 880% in the past year, mainly driven by demand for its plug-in hybrid SUV model.

With a recommendation from shareholders, Elon Musk faces increasing pressures to accelerate Tesla's sales and stock market performance, tied to substantial financial incentives. Under a new agreement, Musk must also deliver one million humanoid robots over the next decade, bolstering Tesla's investments in innovation.

While BYD has now claimed the sales crown, Tesla's financial performance continues to exceed BYD's in recent quarters, underscoring the complex competitive landscape of the electric vehicle sector.