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 nearly 9% to 1.64 million vehicles worldwide, according to company reports released on Thursday and Friday.

Tesla's decline in deliveries marks the second consecutive year of falling car deliveries. BYD's overall new energy vehicle sales, including hybrids, reached 4.6 million units, signaling a significant shift in the competitive landscape of the EV market. Exports for BYD surged 145% year-over-year.

Several factors contributed to this shift in the EV market. Tesla faced a mixed reception to new offerings, increased competition, and unease over CEO Elon Musk's political activities, according to Al Jazeera. The New York Times Technology reported that Tesla's sales decline followed the elimination of federal tax credits for electric car purchases. Tesla's shift in focus towards self-driving technology and robots also played a role in the company's reduced sales volume compared to previous goals.

While Tesla remains the top American EV manufacturer, its sales slump raises concerns about a potential slowdown in the adoption of electric vehicles in the U.S., according to the NYT Technology. The rise of BYD signals China's growing dominance in the EV market, reflecting increased competition and the intersection of technology, corporate leadership, and societal values in shaping the future of transportation, Al Jazeera reported.