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BYD edges ahead of Tesla in annual EV sales
Chinese automaker BYD is set to become the world's largest electric vehicle (EV) seller for the first time, outpacing Tesla in 2025 annual sales, according to figures released Thursday.
Sales figures and market shift
BYD reported a 28% increase in battery-powered car sales last year, reaching over 2.25 million vehicles. Tesla, which will disclose its full-year figures later Friday, previously estimated sales of around 1.65 million units for 2025.
The U.S. automaker has faced challenges, including lukewarm reception for new models, investor concerns over CEO Elon Musk's political engagements, and rising competition from Chinese brands.
Tesla's struggles and strategic moves
Tesla's sales dipped in early 2025 amid backlash over Musk's involvement in former U.S. President Donald Trump's administration. The company responded in October by introducing lower-priced versions of its top-selling models to stimulate demand.
Musk, already the world's wealthiest individual, must now significantly boost Tesla's sales and market value over the next decade to secure a $1 trillion compensation package approved by shareholders in November. The deal also requires Tesla to sell 1 million humanoid robots within ten years, alongside continued investment in its Optimus robot and self-driving Robotaxis.
Some investors have criticized Musk for spreading his focus too thin, juggling roles at Tesla, social media platform X, SpaceX, the Boring Company, and Trump's Department of Government Efficiency (Doge). Musk has since pledged to reduce his government commitments.
BYD's growth amid global expansion
Despite a slowdown in 2025-the weakest growth rate in five years-BYD remains a dominant force in the EV market, leveraging competitive pricing to challenge Western rivals like Geely and MG. The Shenzhen-based company has rapidly expanded into Latin America, Southeast Asia, and Europe, despite high tariffs on Chinese EVs in many countries.
In October, BYD announced the UK as its largest market outside China, with sales surging 880% year-over-year through September. Demand for the plug-in hybrid version of its Seal U SUV drove much of the growth.
Outlook for the EV sector
Analysts say BYD's rise reflects broader shifts in the global EV market, where Chinese manufacturers are gaining ground through aggressive pricing and rapid innovation. Tesla, meanwhile, faces pressure to regain momentum amid intensifying competition and internal challenges.
