BYD Surpasses Tesla as World’s Largest Electric Vehicle Seller Amid Musk Challenges
Chinese automaker BYD has overtaken Elon Musk’s Tesla as the world’s top seller of electric vehicles (EVs), marking a historic shift in the global EV market. BYD reported that its battery-powered car sales rose nearly 28% in 2025, reaching more than 2.25 million vehicles, surpassing Tesla’s 1.64 million cars sold worldwide—a decline of almost 9% compared to the previous year. This is Tesla’s second consecutive year of falling deliveries.
Tesla’s sales decline was most pronounced in the final quarter of 2025, dropping 16%, partly due to the repeal of a government subsidy that had reduced prices on certain EVs by up to $7,500.
Analysts have also attributed the slump to mixed reception of Tesla’s new models, Elon Musk’s political activities, and intensifying competition from Chinese rivals including BYD, Geely, and MG, which have pressured Western brands by offering lower-priced alternatives.
In response, Tesla launched more affordable versions of its two best-selling models in the U.S. in October, aiming to boost sales. Meanwhile, Musk’s ambitious compensation deal, approved by shareholders in November, ties a potential payout of up to $1 trillion to Tesla hitting ambitious sales and market targets over the next decade. As part of this deal, Musk must also sell one million humanoid robots, with Tesla investing heavily in its “Optimus” product line and self-driving “Robotaxis.”
Analysts say Tesla’s self-driving initiatives in 2026 will be critical to its overall performance, despite ongoing questions about feasibility. Wedbush Securities’ Dan Ives predicts Tesla could capture 70% of the self-driving market due to its scale and technological edge.
Musk, who also runs SpaceX, the Boring Company, and social media platform X, previously held a role in the U.S. government, which some investors say distracted him from Tesla, contributing to last year’s sales slump. He has since stepped back from government duties to focus on his business ventures.
As BYD continues its rapid growth, Tesla faces mounting pressure to reclaim its position at the forefront of the global EV industry.