China’s BYD Takes the EV Crown — Overtakes Tesla as World’s Largest Electric Vehicle Seller

In a landmark shift in the electric vehicle (EV) market, China’s BYD has overtaken Elon Musk’s Tesla to become the world’s largest seller of electric vehicles in 2025, marking the first time Tesla has lost its global sales crown.

According to full-year figures released by both companies and industry observers, BYD delivered approximately 2.25–2.26 million all-electric vehicles in 2025, a roughly 28 % increase compared with the previous year. In contrast, Tesla’s annual deliveries declined to around 1.63–1.64 million electric vehicles, representing an 8.6 % drop from its 2024 totals. 

What This Means for the EV Market

The milestone reflects a broader evolution in the global EV industry:

• China’s domestic market strength: Strong EV demand at home, combined with a broad lineup of vehicles across price points, has helped BYD scale rapidly. 

• Expanded global footprint: BYD’s export volume surged, with more than one million vehicles shipped overseas in 2025, helping the company’s presence in Europe, Latin America and Southeast Asia grow. 

• Tesla’s challenges: Tesla’s drop in deliveries stems partly from waning demand in key regions, the expiration of U.S. EV tax incentives and tougher competition from both Chinese and established global automakers. 

Industry analysts see BYD’s ascent not simply as a momentary shift but a sign of China’s rising influence in sustainable automotive manufacturing. With its vertically integrated supply chain, heavy investments in technology and competitive pricing, BYD is reshaping global EV dynamics.

Despite losing the sales crown, Tesla remains a dominant force in EV technology and brand perception. The company continues to invest in new models, autonomous driving features, and innovations in battery and AI systems. However, its challenge now lies in reinvigorating demand and maintaining relevance amid intensifying rivalry.