How BYD Overtook Tesla's Global Electric Vehicle Sales
After almost a decade dominating the EV market, Tesla has lost its global sales crown to Chinese automaker BYD at the close of 2025.
Tesla sales dropped 8.6% over the year, with fourth-quarter deliveries down 16%. BYD surpassed Tesla for annual sales, driven by a 28% rise in battery electric vehicle demand.
Tesla CEO Elon Musk now appears more focused on autonomous technologies than EVs, as the company launches robotaxi trials and humanoid robots.
In Teslaâs third-quarter earnings call, he said: âPeople just don't quite appreciate the degree to which this will take off⌠itâs going to be like a shock wave.
âWe have millions of cars out there that, with a software update, become full self-driving cars and, you know, weâre making a couple million a year.â
EV leaders through history
Based in Ohio, Baker Electric was the worldâs largest EV maker in the early 1900s, even outselling gasoline cars in some markets.
Detroit Electric also built more than 13,000 EVs, but petroleumâs low cost made gas models more practical.
The Mitsubishi i-MiEV, launched in 2009, became the first highway-capable, mass-produced EV of the modern era, offering a range of around 62 miles and enjoying 18 months without direct competition.
The Nissan Leaf followed in 2010, becoming the first electric car to exceed 100,000 and later 200,000 sales.
Tesla took the global EV lead around 2015, overtaking the Leaf. For much of the following decade, Teslaâs greatest hurdle was production capacity rather than demand.
By 2026, the EV crown has shifted to China, where BYD’s vertically integrated model and broad vehicle lineup across price points are driving success.
How BYD beat Tesla
BYD has expanded into Europe and Southeast Asia with affordable models like the Seagull.
The company began as a battery manufacturer, becoming the world’s largest producer of nickel-cadmium batteries by 2003 — widely used in mobile phones. It launched its first plug-in hybrid in 2008 and has since grown into a global EV powerhouse.
BYD has produced its lithium iron phosphate “Blade Batteries” for both its own cars and other automakers since 2020. Electrive reports Tesla has even used these cells in some Model Y vehicles.
Teslaâs sales are still anchored in its Model 3 (2017) and Model Y (2020), alongside the Models S, X, and the Cybertruck.
BYD, meanwhile, offers dozens of models spanning budget hatchbacks to premium SUVs.
Global EV markets
China remains the worldâs largest EV market, with BYD claiming a 15% share of all passenger vehicle sales.
In December 2025, Tesla delivered nearly 97,000 vehicles in China â its second-best month ever.
Despite these strong figures, Tesla’s market share has slipped as BYD, Xiaomi, and Geely launch more advanced and affordable EVs. In Europe, Tesla sells four models while BYD now offers at least seven.
Though BYD leads globally, Elon Musk’s company remains the US market leader, where BYD currently sells no passenger vehicles.
The US government’s 100% tariff on Chinese-made EVs effectively doubles BYD’s prices, curbing its entry into America’s electric market.
