BYD Overtakes Tesla as World's Top EV Seller

China's BYD surpassed Tesla in 2025 to become the world's leading seller of electric vehicles (EVs), marking the first time the Chinese automaker has outpaced its American rival in annual sales. BYD reported a 28% sales increase, reaching 2.25 million battery-powered cars, while Tesla's sales dropped to 1.64 million vehicles worldwide, according to company reports released this week.

Tesla's car sales experienced a decline for the second consecutive year. The drop in sales placed Tesla behind BYD, which announced its figures on Thursday. BYD's overall new energy vehicle sales, including hybrids, reached 4.6 million units.

The shift in the EV market landscape comes as Tesla faced a challenging year. Factors contributing to Tesla's sales slump included a mixed reception to new offerings, unease surrounding Elon Musk's political activities, and intensifying competition, according to BBC News. The New York Times reported that the elimination of federal tax credits for electric car purchases and Tesla's shift in focus towards self-driving technology and robots also played a role in the company's reduced sales volume.

BYD's exports experienced a surge, increasing by 145% year-over-year, Wired reported. While Tesla remains the top American EV manufacturer, its sales decline raises concerns about a potential slowdown in the adoption of electric vehicles in the U.S., according to the NYT.