At a Glance
- BYD surpassed Tesla as the world’s largest EV maker, selling 2.25 million EVs versus Tesla’s 1.64 million deliveries in 2025.
- BYD‘s global new-energy vehicle sales jumped 28 % to 4.6 million, while Tesla fell 16 % year-over-year in the fourth quarter.
- Tesla‘s Model Y refresh failed to revive sales and its Cybertruck sold fewer than 50,000 units, far below the 250,000 units Musk promised investors.
- Why it matters: The shift shows that Chinese automakers are overtaking U.S. incumbents, reshaping the competitive landscape of the electric-vehicle market.
Tesla’s dominance has slipped as BYD‘s sales surge. In 2025, BYD delivered 2.25 million EVs, a 28 % increase, while Tesla delivered 1.64 million vehicles, its second consecutive annual decline and a 16 % drop in Q4.
The competition is intense. BYD sold 4.6 million new-energy vehicles worldwide, including over 1 million exported cars. Passenger-vehicle exports rose more than 145 % year-over-year.
Tesla faces multiple setbacks. The Model Y refresh failed to boost sales, and the Cybertruck has sold fewer than 50,000 units since deliveries began 14 months ago, despite Musk’s 250,000-unit target.
Tesla‘s sales slump extended across the U.S. and Europe, prompting Elon Musk to seek help from Donald Trump. Trump temporarily converted the White House South Lawn into a Tesla showroom, but later reportedly considered selling the Model S Plaid after a fallout with Musk.
SpaceX’s purchase of Cybertrucks added to the story. Electrek reported that Musk’s SpaceX bought tens of millions of dollars worth of Cybertrucks that Tesla could not sell, with the pickups lined up at SpaceX facilities.
Andy Palmer said:
> “Tesla still has formidable assets, brand recognition, manufacturing know-how, and a strong installed base.”
Musk’s strategy now shifts away from EVs, promising a $1 trillion pay package and a focus on robotaxis and Optimus robots. The company has pledged 1 million humanoid robots over the next decade, but footage shows them still remotely operated.
Tesla‘s robotaxi launch in Austin in June was limited and far behind Waymo, highlighting the gap in autonomous driving technology.
BYD‘s growth is the slowest in five years, driven by fierce domestic competition. Nevertheless, the company is expanding aggressively, targeting Latin America, Southeast Asia, and Europe, even as many countries impose tariffs on Chinese EVs.
In the U.K., BYD has become its biggest market outside China, with sales up 880 % from a low base. The company also demonstrated its engineering prowess at a German test track, where the Yangwang U9 Xtreme hypercar reached 308.4 mph, the fastest production car ever.
| Metric | 2024 | 2025 |
|---|---|---|
| BYD EV sales | 1.75 million | 2.25 million |
| Tesla deliveries | 1.83 million | 1.64 million |
| BYD new-energy vehicle sales | 3.5 million | 4.6 million |
Key Takeaways
- BYD has overtaken Tesla as the world’s largest EV maker, driven by a 28 % sales jump.
- Tesla‘s sales fell 16 % in Q4, and its flagship models underperformed.
- The shift signals a broader realignment in the global EV market, with Chinese brands gaining momentum.
The electric-vehicle race has entered a new phase, with BYD leading and Tesla scrambling to regain footing amid sales declines and strategic pivots.
