Tesla has lost its position as the world’s largest seller of battery electric vehicles, overtaken by Chinese automaker BYD after another year of declining sales.
BYD surpassed Tesla in 2025, selling 2.25 million fully electric vehicles—nearly 28% more than the year before—while Tesla reported 1.64 million deliveries, an 8.5% annual drop. It marks the first time BYD has outsold Tesla in battery-only EVs and follows Tesla’s second consecutive year of declining sales.
The milestone caps BYD’s rapid rise from domestic player to global EV leader. When plug-in hybrids are included, BYD had already overtaken Tesla in total vehicle sales in 2024, shipping 4.6 million vehicles. Tesla does not sell hybrid models.
The shift is a major blow for Tesla, which had held the top spot in battery EV sales since 2018. The company has faced weakening demand following the removal of US EV tax credits, falling sales in Europe, and intensifying competition in China.
BYD’s success has been driven by aggressive pricing, a broad lineup ranging from low-cost city cars to premium vehicles, and rapid technological advances such as ultra-fast charging and free autonomous driving features. As the company accelerates its global expansion, pressure on Tesla’s EV dominance is set to intensify.