China’s BYD has surpassed Elon Musk’s Tesla to become the world’s largest seller of electric vehicles (EVs), marking the first time it has overtaken its American rival in annual sales.
Tesla reported a nearly 9% drop in global car deliveries in 2025, selling 1.64 million vehicles—its second consecutive year of declining sales. BYD, meanwhile, said its battery-powered car sales rose almost 28% last year to over 2.25 million.
Tesla faced a challenging year due to mixed responses to new models, concerns over Musk’s political activities, and rising competition from Chinese automakers. Companies like BYD, Geely, and MG have pressured Western brands by offering lower-priced EVs. In response, Tesla launched more affordable versions of its two best-selling models in the US in October to boost sales.
