BYD overtakes Tesla to become world’s top EV seller in 2025

Chinese EV giant BYD Co. surpassed Tesla Inc. to take the title of the world’s number one electric vehicle seller after the US-based company’s annual sales declined by nearly 9 per cent. Tesla’s second consecutive drop in annual sales comes amid the end of US tax credits for EV purchases, as well as CEO Elon Musk’s political tangents. The company sold 1.6 million EVs in 2025 after registering a 16 per cent decline in deliveries during Q4.

In contrast, BYD marked a 28 per cent increase in EV sales to 2.64 million, with a little less than half of its portfolio being electric. It finished the year with a 7.7 per cent jump in total sales that took the figure to 4.6 million across its global lineup.

For years, Tesla has been well ahead of its rivals in the EV sector, whether it came to development or sales. With the rate at which the market has grown in the last decade, the range of competition has grown significantly. At the same time, the rise of Chinese EV manufacturers on the global stage has proven to be more than detrimental to the sales figures of brands from the rest of the world.

Tesla’s woes and the road ahead

The recent outrage over Elon Musk's forays into US politics and aligning with the Donald Trump-led presidency has significantly hurt Tesla shares (REUTERS)

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The recent outrage over Elon Musk's forays into US politics and aligning with the Donald Trump-led presidency has significantly hurt Tesla shares (REUTERS)

Tesla’s sales in the fourth quarter have taken a hit from the end of a $7,500 EV subsidy, phased out by the Donald Trump-led administration. During this period, it sold 4,18,227 units globally, falling short of analyst expectations. The Model 3 and the Model Y EVs accounted for more than 90 per cent of the total.

The brand itself faced backlash from widespread criticism of Musk embracing US politics and aligning with the Trump presidency, and subsequently heading the controversial Department of Government Efficiency. DOGE was set up to cut ‘wasteful’ federal spending and bureaucracy. So far, it has cancelled thousands of federal contracts and grants totalling billions in value, and these include over 5,000 USAID grants, awards, and contracts, as well as millions in research and education grants.

Musk’s political endorsements and DOGE leadership have significantly hurt Tesla sales, drawing criticisms from environmentalists and eco-conscious buyers and fuelling protests at facilities. As of May 2025, Musk has stepped down from his leadership role at the agency, largely seen as a move to ease investor outrage. The CEO is now rerouting Tesla to become a major player in autonomous vehicles, A.I., and humanoid robots of the future.

Meanwhile, there's a new top dog in the EV sector looking to secure its position on the throne. BYD is currently gearing up to launch a range of facelifts and new-gen models to keep things fresh amid competition from other Chinese players such as Geely, SAIC, and Xiaomi.

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