BYD overtakes Tesla in annual sales

The global electric vehicle market has seen a change in leadership. Chinese automaker BYD has overtaken US company Tesla in annual sales for the first time, making it the world’s largest electric vehicle seller.

BYD overtakes Tesla in annual sales

According to Tesla, its global car sales in 2025 fell by about 9 percent to 1.64 million. Tesla’s car deliveries fell for the second consecutive year. On the other hand, BYD said that its battery-powered car sales last year rose by about 28 percent to more than 2.25 million. This gap has created a new reality in the global EV market. 2025, however, was not an easy year for Tesla. The mixed market reaction to new products, investor concerns about the political role of CEO Elon Musk, and increasing competition from Chinese manufacturers all put the company under pressure. The impact of this was most visible in the last quarter of the year. Tesla’s car sales fell by 16 percent in those three months. Analysts say that the withdrawal of government subsidies in the United States also had a negative impact on sales. Previously, certain battery-powered, plug-in hybrid and fuel cell vehicles could receive a maximum discount of $7,500. Many buyers lost interest in buying because the subsidies were discontinued.

In this situation, several Wall Street analysts have lowered Tesla’s sales forecast for 2026. This indicates uncertainty about the company’s future growth. At the same time, Chinese manufacturers such as Geely and BYD have increased pressure on Western manufacturers by bringing cars to the market at relatively low prices. In order to maintain sales, Tesla launched cheaper versions of its two best-selling models in the United States last October.

Meanwhile, Elon Musk has a big goal to increase Tesla’s sales and market value in the next decade. According to a remuneration agreement approved by shareholders, if these goals are met, he can receive a maximum remuneration of up to $1 trillion. As part of the agreement, a goal of selling one million humanoid robots in the next 10 years has also been set. With that goal in mind, Tesla has increased its investment in its ‘Optimus’ robot and self-driving ‘robotaxi’ project.

According to analysts, the practical application of Tesla’s self-driving technology in cars and robotaxi technology in 2026 could play a significant role in the company’s future performance. Although there are many questions about self-driving technology, there are also many optimistic analysts. According to Wedbush Securities analyst Dan Ives, Tesla could capture a large share of the global self-driving car market in the next decade.

Elon Musk’s business involvement outside Tesla is also extensive. He is also involved in social media X, aerospace technology company SpaceX, and tunnel construction company The Boring Company. Some investors felt that his role in the government efficiency department in the administration of former US President Donald Trump was distracting him from Tesla. He later stepped down from that role. BYD, on the other hand, saw its sales grow at their slowest rate in five years in 2025. One major reason for this is fierce competition in China’s domestic market. However, despite surpassing Tesla in terms of vehicle sales, Tesla has still been ahead in terms of profits in recent quarters.

Nevertheless, BYD’s position in the global electric vehicle market is strong due to its relatively low price. Its business is expanding rapidly in Latin America, Southeast Asia and various regions of Europe. However, many countries have imposed high tariffs on Chinese electric vehicles. In October, BYD said that the UK was now its largest market outside China. The company’s sales in the country increased by 880 percent in the year to September. The growth has been largely driven by increased interest in the plug-in hybrid version of its Sill U sports utility vehicle.