TL;DR
China's BYD reported a nearly 28% rise in battery-electric car sales last year to more than 2.25 million, positioning it to outsell Tesla on an annual basis. Tesla's 2025 total is expected to be around 1.65 million based on analyst estimates; the company is due to publish its official figure.
What happened
BYD, the Shenzhen-based automaker, said its battery-electric car sales rose by almost 28% last year to exceed 2.25 million units, a level that would make it the world's biggest seller of electric vehicles for the year. Tesla has not yet published its full 2025 total; analysts' estimates put its volume at roughly 1.65 million vehicles and the company was scheduled to reveal its official figure later in the week. Tesla has faced headwinds including mixed market reception to recent models, heightened competition from Chinese manufacturers and a sales dip in the first quarter of 2025 following public backlash over CEO Elon Musk's political involvement. BYD's rapid international expansion continued despite tariffs in some markets; the company reported particularly strong growth in the UK and has been growing in Latin America, Southeast Asia and parts of Europe.
Why it matters
- A shift in annual sales leadership reflects changing competitive dynamics in the global EV market.
- BYD's pricing strategy and international expansion could increase price pressure on rivals.
- Tesla's sales performance is tied to investor expectations and a major executive incentive package.
- Continued growth of Chinese EV makers may influence trade, markets and regulatory responses abroad.
Key facts
- BYD reported battery-electric car sales rose nearly 28% to more than 2.25 million last year.
- Analysts estimate Tesla's 2025 sales at about 1.65 million vehicles; Tesla was due to publish official totals.
- BYD's sales growth rate in 2025 was its weakest in five years, according to the company.
- Tesla introduced lower-priced versions of two top US models in October to try to boost demand.
- Tesla experienced a sales slump in the first quarter of 2025 after backlash linked to CEO Elon Musk's political activities.
- Shareholders approved a pay package in November that could award Musk up to $1tn, contingent on performance targets.
- As part of that compensation agreement, Musk must meet goals that include selling a million humanoid robots over ten years.
- BYD expanded strongly outside China, with the UK becoming its largest market outside China after an 880% sales rise to the end of September.
- BYD faces growing competition at home from other Chinese EV makers such as XPeng and Nio.
- The company has expanded into Latin America, Southeast Asia and parts of Europe despite steep tariffs in some countries.
What to watch next
- Tesla's official global sales total for 2025, which the company was scheduled to release (confirmed in the source).
- Whether BYD can sustain international growth amid competition from XPeng, Nio and other Chinese entrants (not confirmed in the source).
- How Musk's reduced role in government and other non-Tesla commitments affects Tesla's product rollout and sales performance (not confirmed in the source).
Quick glossary
- Electric vehicle (EV): A vehicle that uses one or more electric motors for propulsion, powered by batteries instead of—or in addition to—an internal combustion engine.
- Plug-in hybrid: A vehicle combining an internal combustion engine and an electric motor with a battery that can be recharged by plugging into an external power source.
- Humanoid robot: A robot designed to resemble the human body in shape and movement, intended for tasks that may benefit from a human-like form.
- Robotaxi: An autonomous vehicle designed to provide taxi-like passenger transport without a human driver.
- Tariff: A tax or duty imposed by a government on imported goods, often used to protect domestic industries or generate revenue.
Reader FAQ
Has BYD overtaken Tesla as the world's top EV seller?
BYD reported more than 2.25 million battery-electric car sales last year and was set to outpace Tesla based on analysts' estimates of Tesla's 2025 sales; Tesla's official total was pending release.
Why did Tesla's sales weaken?
The source attributes Tesla's challenges to mixed reception of new models, intensified competition from Chinese rivals, and a sales slump after backlash related to CEO Elon Musk's political activities.
Will Elon Musk receive a $1tn payout?
Shareholders approved a compensation package that could total as much as $1tn if performance targets are met; the payout is contingent on achieving specific milestones.
Is BYD expanding outside China despite trade barriers?
Yes. The company has increased sales in regions including Latin America, Southeast Asia and parts of Europe and reported a large rise in UK sales, despite steep tariffs in some countries.
China's BYD set to overtake Tesla as world's top EV seller 17 minutes ago Share Save Osmond Chia Business reporter Getty Images China's BYD is set to overtake Elon Musk's…
Sources
- China's BYD set to overtake Tesla as top EV seller
- BYD surpasses Tesla in 2025 EV sales, claiming global …
- China's BYD set to overtake Tesla as world's top EV seller
- China's BYD poised to overtake Tesla in 2025 EV sales
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