BYD Overtakes Tesla as Global EV Sales Leader

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's sales of battery-powered cars rose by approximately 28% to more than 2.25 million vehicles, while Tesla's sales dropped to 1.64 million vehicles worldwide, according to company reports released this week.

Tesla's deliveries declined for the second consecutive year, including a 16% year-over-year drop in the fourth quarter, Wired reported. BYD's total new energy vehicle sales, which include hybrids, reached 4.6 million, signaling a significant shift in the EV market landscape. The company's exports more than doubled, further demonstrating its growing global presence.

Several factors contributed to this shift in EV market leadership. According to the New York Times, Tesla's sales declined following the elimination of federal tax credits for electric car purchases. Tesla's strategic shift towards self-driving technology and robots, coupled with broader concerns about a potential slowdown in the U.S. electric vehicle market, also played a role.

The Trump administration's rollback of clean air regulations further complicated the landscape for electric vehicle adoption in the United States, the New York Times noted. In addition, Al Jazeera reported that increased competition and potential consumer response to Tesla CEO Elon Musk's controversial political activities may have contributed to the shift.

While Tesla remains the largest American EV maker, its sales slump raises concerns about a potential slowdown in the adoption of electric vehicles in the U.S., according to the New York Times. Tesla faced a tough year with a mixed reception to new offerings, unease over Musk's political activities, and intensifying competition, the BBC reported. BYD's success reflects China's growing dominance in the EV market, Al Jazeera noted.