BYD Overtakes Tesla in 2025 EV Sales to Claim Global Lead for First Time

Beijing: China’s BYD has surpassed Tesla in global electric vehicle sales in 2025, becoming the world’s largest seller of battery-powered cars for the first time.

BYD said its battery-electric vehicle deliveries rose nearly 28% in 2025, reaching more than 2.25 million units, a milestone that puts the Shenzhen-based automaker ahead of its US rival on an annual basis.

Tesla, which is due to release its full-year delivery figures later on Friday, has previously guided toward sales of around 1.65 million vehicles, based on analyst estimates, well short of BYD’s reported total.

A challenging year for Tesla

The shift in global leadership follows a difficult year for Tesla, marked by uneven demand for new models, rising competition from Chinese manufacturers, and growing investor unease over the public and political profile of its chief executive, Elon Musk.

Tesla moved to stimulate demand in October by introducing lower-priced versions of its Model 3 and Model Y, responding to criticism that it had been slow to roll out more affordable electric vehicles. Earlier in the year, the company’s first-quarter sales fell, intensifying concerns about growth momentum.

Investor sentiment was also weighed down by worries that Musk’s expanding commitments, including a role in US President Donald Trump’s Department of Government Efficiency, alongside leadership roles at X, SpaceX, and the Boring Company, were diluting his focus on Tesla. Musk has since said he plans to scale back his government involvement.

The pressure is heightened by a shareholder-approved compensation package that could be worth up to $1 trillion over the next decade, contingent on dramatic gains in Tesla’s valuation and performance.

BYD’s steady global expansion

BYD’s rise comes despite signs that its growth rate is beginning to moderate. The company recorded its slowest annual sales growth in five years in 2025, reflecting intense competition in China from rivals such as XPeng and Nio.

Even so, aggressive pricing and a broad product range have helped BYD accelerate its global expansion. The company has pushed deeper into Latin America, Southeast Asia, and Europe, often navigating or absorbing the impact of higher tariffs on Chinese electric vehicles.

In October, BYD said the United Kingdom had become its largest overseas market outside China, with sales in Britain jumping 880% year-on-year through September, driven largely by demand for the plug-in hybrid Seal U SUV.

A turning point for the EV industry

BYD’s ascent marks a significant shift in the global EV landscape, underscoring the growing influence of Chinese manufacturers at a time when Western automakers are grappling with cost pressures, slower adoption in some markets, and intensifying competition.

Analysts say the 2025 sales milestone highlights how scale, pricing, and rapid international expansion are reshaping leadership in the electric vehicle industry.