Chinese company BYD overtook Tesla and became the world's largest electric vehicle seller

BYD car. Company photo

Chinese company BYD surpassed Elon Musk's Tesla and became the world's largest electric vehicle seller. This is the first time it has overtaken its American competitor in annual sales, reports the BBC.

Tesla car sales in 2025 fell by almost 9% to 1.64 million vehicles worldwide, the automaker reported — this is the second consecutive year that deliveries have fallen. Meanwhile, sales of battery-electric vehicles from BYD grew by almost 28% last year, totaling more than 2.25 million.

Tesla sales fell by 16% in the last three months of 2025. The decline was partly due to the cancellation of a government subsidy that allowed reducing the price of certain electric vehicle, hybrid, or fuel cell car models by up to $7,500. Wall Street analysts recently lowered their Tesla sales forecasts for 2026, signaling increasingly gloomy prospects.

Factors included concerns about Musk's political activity and increased competition from Chinese companies.

Chinese firms such as Geely, MG, and BYD — which is now the largest electric vehicle company in the country — are putting pressure on Western competitors by setting prices lower than those of established brands. In October, Tesla responded by launching cheaper versions of two of its most popular models in the US in an attempt to boost sales.

Musk, who is already the world's richest person, has the task of significantly increasing Tesla's sales and market value over the next decade to secure a record compensation package. This deal, approved by shareholders in November, could bring him a payout of up to $1 trillion. As part of the agreement, Musk must also sell one million humanoid robots over the next ten years. Tesla has invested heavily in its Optimus product and robotaxis.

Analysts say that the launch of Tesla's robotaxis and autopilot systems in 2026, which has already helped raise its stock price to a record level, will be crucial for its overall performance. Although questions remain about Tesla's ambitions in autonomous driving, some remain optimistic. Dan Ives of Wedbush Securities believes that Tesla will own about 70% of the autonomous car market in the next decade, because "no other company in the world can match the scale and reach" of this company.

Besides Tesla, Musk's business interests include the social network X, the rocket company SpaceX, and The Boring Company, which digs tunnels. These commitments, as well as managing US President Donald Trump's Department of Government Efficiency early last year, led some investors to suggest that Musk was not sufficiently focused on Tesla. Musk has since left his position in the US government.

Despite BYD's rise in recent years, its sales growth in 2025 slowed to its lowest level in five years, partly due to fierce competition in China, its key market. And while BYD has surpassed Tesla in the number of vehicles sold, the American firm remained more profitable in recent quarters.

Nevertheless, BYD remains a global giant in the electric vehicle sector, as its prices are often lower than those of its competitors. The rapid expansion of the Shenzhen-based company — especially in Latin America, Southeast Asia, and parts of Europe — is happening despite many countries imposing high tariffs on Chinese electric vehicles. In October, BYD stated that the UK had become its largest market outside of China. The firm reported that its sales in Britain grew by 880% year-on-year (to the end of September) thanks to strong demand for the hybrid version of the Seal U SUV.

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