BYD Overtakes Tesla to Become the World’s Largest Electric Vehicle Seller in 2025
January 2, 2026
The global electric vehicle (EV) market reached a historic turning point in 2025 as China’s BYD officially overtook Tesla to become the world’s largest seller of battery electric cars. The milestone reflects not only changing consumer demand but also deeper structural shifts in the global automotive industry, where Chinese manufacturers are rapidly gaining influence.
According to full-year data, BYD delivered approximately 2.26 million battery electric vehicles in 2025, far surpassing Tesla’s 1.63 million deliveries during the same period. The gap widened significantly in the final quarter of the year, highlighting diverging trajectories for the two EV giants.
Tesla Struggles Amid Policy Changes and Slowing Demand
Tesla’s weaker performance in 2025 was driven by a combination of political, economic, and reputational factors. The company reported 418,200 vehicle deliveries in the fourth quarter, falling well short of market expectations. Analysts had projected deliveries closer to 441,000 units.
A major factor behind Tesla’s slowdown was the rollback of electric vehicle subsidies in the United States under President Donald Trump. The administration also removed emissions regulations that had previously encouraged EV production, reducing incentives for both consumers and manufacturers.
Tesla also faced consumer backlash in parts of Europe and North America following Elon Musk’s public alignment with far-right political movements in late 2024. Annual deliveries declined by 9% compared to 2024, marking the second consecutive year of falling sales for the company.
BYD’s Rapid Rise and Global Expansion
While Tesla struggled, BYD continued its aggressive expansion strategy. The Shenzhen-based automaker recorded a 28% year-on-year increase in battery electric vehicle sales, despite softer momentum in December.
Founded in 1995 as a battery manufacturer by Wang Chuanfu, BYD has grown into a fully integrated automotive powerhouse. The company’s focus on vertical integration—controlling everything from battery production to vehicle assembly—has allowed it to scale rapidly and keep costs competitive.
In total, BYD sold 4.55 million vehicles worldwide in 2025, including electric cars, plug-in hybrids, and commercial vehicles. Sales of electric buses and trucks more than doubled, reaching 57,000 units.
A Changing Global EV Landscape
Electric vehicle sales continue to grow globally, but at a slower pace than initially expected. Slowing adoption has triggered aggressive price competition, forcing automakers to cut margins. Several governments have also softened their timelines for phasing out petrol and diesel vehicles.
Chinese manufacturers such as BYD, SAIC, and Chery have capitalized on this environment by expanding exports and offering competitively priced models across Europe, Asia, and emerging markets.
Technology, Valuation, and the Road Ahead
Despite declining sales, Tesla remains the world’s most valuable carmaker, with a market capitalization of around $1.4 trillion. Investors appear to be betting on Tesla’s ambitions in artificial intelligence, robotics, and autonomous driving rather than short-term vehicle sales.
Tesla has launched a limited robotaxi service in Austin, Texas, but competition is intensifying. Several Chinese automakers already offer comparable driver-assistance technologies. BYD, for example, has introduced its “God’s Eye” system across much of its lineup, including entry-level models.
BYD’s rise past Tesla in 2025 represents more than a symbolic victory. It signals a fundamental shift in the global automotive industry, where Chinese manufacturers are no longer followers but leaders in the electric vehicle revolution.
As policy decisions, pricing pressures, and technological competition reshape the EV market, the race for dominance is far from over. However, the balance of power has clearly begun to tilt eastward.