BYD dethrones Tesla as top EV seller

China’s BYD has overtaken Tesla to become the world’s largest seller of electric cars, marking a turning point in the global auto industry and underscoring the growing dominance of Chinese manufacturers in the EV race.

In 2025, BYD sold 2.26 million battery electric vehicles, comfortably ahead of Tesla’s 1.63 million deliveries. The shift reflects both BYD’s rapid expansion and a sharp slowdown at Tesla, whose sales fell for the second year in a row.

Tesla’s decline was most pronounced at the end of the year, with fourth-quarter deliveries missing expectations and annual sales down 9 percent compared with 2024. The slump has been linked to policy changes under US President Donald Trump, including the rollback of EV subsidies and emissions rules that had supported electric car adoption.

The company also faced reputational headwinds after CEO Elon Musk openly aligned himself with far-right politics, triggering consumer backlash in some markets. Tesla shares dipped following the weak delivery numbers, though the firm remains the world’s most valuable carmaker, with investors betting on its ambitions in artificial intelligence and robotics.

BYD’s rise is emblematic of China’s broader push to dominate the electric vehicle transition. Founded as a battery maker in 1995 by Wang Chuanfu, BYD has leveraged scale, aggressive pricing and rapid innovation to outpace rivals. Its electric car sales rose 28 percent in 2025, even as growth in the global EV market slowed and competition intensified.

Beyond pure electric cars, BYD sold 4.55 million vehicles overall last year, including hybrids and commercial vehicles such as electric buses and trucks. It has also moved quickly on advanced driver-assistance features, offering technologies comparable to Tesla’s on even its lower-priced models.

The crossover is more than a sales milestone. It signals a deeper shift in automotive power, with Chinese companies increasingly setting the pace in electric mobility as Western rivals grapple with policy uncertainty, slower demand and rising competition.