BYD sold 2.2 million EVs worldwide in 2025, topping Tesla's 1.6 million

The Tesla era is fading as BYD takes the lead

by · TechSpot

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Bottom line: Tesla's grip on the electric vehicle market loosened in 2025 as Chinese automaker BYD overtook it in global sales, signaling a shift in the industry's most closely watched rivalry. BYD sold 2.25 million battery-electric vehicles last year, a 28 percent increase from 2024, while Tesla reported global deliveries of 1.64 million, marking its second consecutive annual decline.

The reversal follows months of narrowing margins between the two companies. Throughout 2025, BYD repeatedly outsold Tesla in European markets, even as it faced import tariffs and ongoing US government restrictions that have kept the Shenzhen-based automaker out of the American consumer market.

Tesla's 16 percent year-over-year decline in fourth-quarter deliveries underscores the depth of its slowdown. Analysts say the company is grappling with a mix of regulatory, reputational, and product-related challenges that have eroded its earlier dominance.

Updates to Tesla's lineup in 2025 did little to revive demand. A mild refresh of the Model Y failed to generate excitement, while the Cybertruck continued to struggle, with reports suggesting fewer than 50,000 units sold since its late-2024 launch. Even SpaceX reportedly purchased "tens of millions of dollars' worth of Cybertrucks" to support Tesla's balance sheet.

The loss of a $7,500 federal tax credit at the end of September further weakened Tesla's sales momentum in the US. The fourth quarter closed with 418,227 deliveries, missing already reduced analyst expectations of 440,000.

As vehicle sales falter, CEO Elon Musk has increasingly shifted focus toward automation and robotics. Tesla is investing heavily in its driverless robotaxi platform, which launched on a limited basis in Austin last June, as well as in the Optimus humanoid robot – a project Musk claims could reshape household and industrial labor.

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The robotaxi pilot initially operated with safety monitors inside vehicles before transitioning to fully unmanned testing. Tesla plans to expand the service to multiple US cities in 2026, though it remains well behind Alphabet-owned Waymo, which has years of operational experience and a broader customer base.

In 2026, Tesla also expects to begin production of its AI-powered Cybercab – a steering-wheel-free, pedal-less vehicle that Musk describes as a cornerstone of the company's autonomous future.

While Tesla refocuses, BYD's expansion continues at pace. The company sold more than 4.6 million new energy vehicles – its umbrella term for battery-electric and plug-in hybrid models – last year, including over a million exports. Passenger exports alone jumped 145 percent compared with 2024.

Europe and Latin America have become central to BYD's international push. In the UK, its largest market outside China, sales rose 880 percent, albeit from a relatively small base. In September, the company showcased its 3,000-horsepower Yangwang U9 Xtreme, demonstrating the engineering prowess behind its ambitions: the electric hypercar reached a record-setting 308.4 mph at Germany's Papenburg test track, making it the fastest production vehicle – electric or combustion-powered – ever recorded.

Despite these milestones, BYD's 2025 growth represented its slowest pace in five years, reflecting intensifying competition within China's domestic EV market. Still, its steady global expansion and rapid product development have positioned BYD as a defining manufacturer in the post-Tesla EV era.