BYD Surpasses Tesla as World's Largest Electric Vehicle Seller
BYD Surpasses Tesla in Electric Vehicle Sales
The Chinese company BYD has overtaken Tesla, led by Elon Musk, to become the world's largest seller of electric vehicles (EVs). This marks the first time BYD has surpassed the American rival in annual sales. Tesla's vehicle sales fell by nearly 9% in 2025, with 1.64 million vehicles sold globally, according to the manufacturer on Friday, marking a second consecutive year of decline. These figures place Tesla behind BYD, which reported a nearly 28% increase in its electric vehicle sales last year, exceeding 2.25 million units.
The American company faced a challenging year, with mixed reactions to new offerings, dissatisfaction regarding Musk's political activities, and intensified competition from Chinese rivals. Tesla's vehicle sales declined by 16% in the last three months of 2025, partially due to the cancellation of a government subsidy that had helped reduce the price of certain electric vehicles by up to $7,500.
Wall Street analysts have recently lowered Tesla's sales estimates for 2026, signaling an increasingly bleak outlook. Chinese companies like Geely and MG, along with BYD, which has now become the largest electric car company in China, have pressured Western rivals by offering vehicles at lower prices.
In October, Tesla launched cheaper versions of its two best-selling models in the U.S. in an attempt to boost sales. Musk, already the richest man in the world, has the challenging task of significantly increasing Tesla's sales and market value over the next decade to secure a record reward package. The deal, approved by shareholders in November, could net him gains of up to $1 trillion.
Although BYD's sales growth has been impressive in recent years, it slowed in 2025, reaching the weakest growth rate in five years, partly due to fierce competition in China, its primary market. However, BYD remains a significant global player in electric vehicles, with prices just below those of competing manufacturers.
