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 company has outpaced its American rival in annual sales, according to reports from both companies. BYD reported sales of more than 2.25 million battery-powered cars last year, a rise of almost 28%, while Tesla's car sales dropped by nearly 9% to 1.64 million vehicles sold worldwide, the carmaker said on Friday.

Tesla's decline in sales followed the elimination of federal tax credits for electric car purchases, according to the New York Times. The company also faced a mixed reception to new offerings, unease over Elon Musk's political activities, and intensifying competition, according to the BBC.

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, contributed to the company's sales slump, the New York Times reported. The Trump administration's rollback of clean air regulations further complicates the landscape for electric vehicle adoption in the United States.

While Tesla remains the largest American EV maker, policy changes, including the elimination of tax credits and efforts to weaken clean air regulations, have impacted the company's sales, according to the New York Times.