Tesla Loses Top EV Crown as BYD Sales Surge

Tesla has reported weaker-than-expected vehicle deliveries for the fourth quarter of 2025, relinquishing its position as the world’s largest electric vehicle maker by annual sales to China’s BYD.

The US-based automaker delivered 418,227 vehicles in the final three months of the year, bringing its total sales for 2025 to approximately 1.64 million electric vehicles. The figure fell short of market expectations, with analysts surveyed by FactSet projecting fourth-quarter deliveries of about 449,000 units.

A day earlier, Shenzhen-headquartered BYD announced it had sold 2.26 million electric vehicles in 2025, comfortably overtaking Tesla and consolidating its dominance in the rapidly expanding global EV market. The Chinese manufacturer, which also produces hybrid vehicles, recorded a sharp rise in revenue during the year as it accelerated its international expansion.

Industry analysts say Tesla’s performance has been weighed down by multiple factors, including a cooling of EV demand in the United States following the expiration of the $7,500 federal tax credit at the end of September 2025. Observers note that the market is still adjusting to the policy shift, which has dampened consumer incentives for new EV purchases.

Tesla has also faced headwinds in key markets amid growing competition from Chinese manufacturers such as BYD, as well as established European automakers. In addition, the company’s sales momentum has been affected by political controversies surrounding Chief Executive Officer Elon Musk, including his public support for US President Donald Trump and other far-right political figures.

BYD’s latest sales figures underscore the intensifying rivalry in the global electric vehicle sector, as Chinese manufacturers continue to gain ground through aggressive pricing, expanding model ranges, and sustained investment in battery technology.