BYD overtakes Tesla to become world's largest electric vehicle seller

China's BYD has for the first time outsold Tesla in annual electric vehicle (EV) deliveries, the companies said. BYD reported battery-powered car sales rose almost 28% in 2025 to more than 2.25 million vehicles. Tesla said its car sales fell nearly 9% to 1.64 million, marking a second consecutive year of declining deliveries.

Tesla's sales dropped sharply in the final three months of 2025, down 16%. The company said the fall was partly driven by the repeal of a government subsidy that had reduced prices by as much as $7,500 for some electric and plug-in hybrid models. Analysts point to a mixed reception for Tesla's new models, investor unease over Elon Musk's political activities, and intensifying competition from lower-priced Chinese rivals such as Geely, MG and BYD.

Wall Street has recently trimmed its Tesla sales forecasts for 2026. In response to competition, Tesla launched lower-priced variants of its two best-selling US models in October. The firm remains more profitable than BYD in recent quarters, but BYD's pricing and rapid geographic expansion have made it a global EV force.

BYD's sales growth did slow in 2025 to its weakest rate in five years amid fierce competition in its home market.

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Sports, United States, Business, Evs, Byd, Tesla, Elon Musk