The global electric vehicle market has witnessed a major shift. Chinese automaker BYD has surpassed Tesla in annual EV sales for the first time, signaling changing dynamics in the worldwide electric mobility race.
A major turning point has emerged in the electric vehicle (EV) market. Chinese giant BYD has, for the first time, overtaken American company Tesla in annual sales. This shift is more than just numbers — it highlights where the global EV market is headed. Let’s take a closer look at how BYD and Tesla performed.
BYD reported that in 2025, sales of its battery-powered vehicles rose by nearly 28%, crossing 2.26 million units. With this, BYD became the world’s largest seller of electric cars.
However, it is also true that BYD’s growth in 2025 was its slowest in five years, largely due to intensifying competition within China.
For Tesla, 2025 proved to be difficult. The company’s global car sales fell by about 9%, dropping to 1.64 million units.
This was the second consecutive year of declining deliveries. Sales in the final quarter of 2025 alone fell by 16%, highlighting growing challenges.
Mixed customer response to new models
Investor concerns over Elon Musk’s political activities
Removal of up to $7,500 EV subsidies by the U.S. government
Apart from BYD, companies like Geely and MG are also increasing pressure on Western automakers. Their strategy is clear — offer more features at lower prices.
Because of this competitive push, Tesla was forced to launch lower-cost versions of its two best-selling models in the U.S. in October.
Tesla CEO Elon Musk faces major challenges in the coming years. Under a large shareholder-approved compensation package, he must significantly grow Tesla’s sales and market value over the next decade.
At the same time, the company needs to show real progress on projects such as:
Optimus humanoid robot
Fully self-driving robotaxi programs
Analysts believe Tesla’s self-driving and robotaxi rollout in 2026 could play a decisive role in shaping the company’s future. Experts like Dan Ives from Wedbush Securities remain optimistic about Tesla’s long-term prospects.
Even though Tesla still leads in profitability, BYD’s global footprint is expanding rapidly. The company has built strong momentum across:
Latin America
Southeast Asia
Parts of Europe
Despite high tariffs on Chinese EVs in several countries, BYD continues to expand.
In October, the company announced that the UK had become its largest market outside China, driven mainly by strong demand for the Seal U SUV plug-in hybrid. Sales in the UK surged by 880% year-on-year.