BYD Overtakes Tesla as World’s Top Electric-Car Seller After U.S. Policy Shift

China’s BYD surpassed Tesla as the world’s largest seller of electric cars in 2025, highlighting a shift in the global EV market after U.S. policy changes removed federal incentives. Tesla said it delivered 1.64 million cars worldwide in 2025, down from almost 1.8 million in 2024.

Deliveries fell 16 percent in the fourth quarter, to 418,000 from 496,000 a year earlier, leaving the company with a 9 percent decline for the year. BYD reported selling 2.26 million electric cars globally in 2025, up 28 percent from 2024, with a growing share of sales outside China.

High U.S. tariffs effectively bar many Chinese electric cars from the American market. The decline in U.S. EV demand followed Congress and President Trump’s elimination of federal tax credits of up to $7,500 and an administration effort to roll back clean air regulations. Tesla, which accounts for about 45 percent of the U.S.

EV market, was hit especially hard. Buyers rushed to claim credits before they expired, contributing to a sharp drop afterward: sales of all EV brands in November fell more than 40 percent from a year earlier, according to Cox Automotive. Automakers have cut prices, and several EVs now sell for under $40,000.

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Sports, United States, Business, Electric Vehicles, Tesla, Byd, Auto Industry