For the first time, China’s BYD has overtaken Tesla to become the world’s largest seller of electric vehicles on an annual basis, ending Tesla’s long-standing lead in global EV sales.
Industry sales data and company disclosures show that BYD sold approximately 2.26 million battery electric vehicles worldwide in 2025, surpassing Tesla’s roughly 1.65 million vehicle deliveries for the year. This marks the first time a competitor has outpaced Tesla in global annual EV sales since Tesla emerged as the market leader earlier in the decade.
BYD’s rise reflects its broad product strategy and rapid global expansion. Unlike Tesla, which sells only pure battery electric vehicles, BYD offers both battery electric vehicles and plug-in hybrid electric vehicles. In 2025, BYD sold roughly 2.3 million plug-in hybrids in addition to its battery electric vehicles, bringing total new energy vehicle sales to more than 4.5 million units worldwide.
Strong demand in China, the world’s largest EV market, continued to anchor BYD’s volume, while overseas sales surged to record levels. Exports exceeded one million vehicles for the first time, helping BYD gain market share in Europe, Southeast Asia, Latin America, and other regions.
Several factors have driven BYD’s growth. The company benefits from a wide and competitively priced model lineup, extensive vertical integration that includes in-house battery and component production, and scale advantages in China’s mature EV supply chain. Its international expansion has further strengthened its global position as competition intensifies.
Tesla, meanwhile, saw its annual deliveries decline slightly in 2025 compared with the previous year. The company faced softer demand in some markets, increased competition from both Chinese and traditional automakers, and a product lineup that has seen fewer major refreshes in recent years. Despite this, Tesla remains a dominant force in pure battery electric vehicles and continues to have strong global brand recognition.
The shift underscores the growing influence of Chinese manufacturers in the global electric vehicle market. Chinese companies now account for a substantial share of global EV production and sales, supported by advanced supply chains and cost efficiencies that are reshaping the competitive landscape.
The milestone also highlights intensifying competition in the global transition to electric mobility. As automakers worldwide accelerate electrification plans, the year ahead is expected to bring even greater rivalry between established leaders and rapidly expanding challengers.
BYD founder and chairman Wang Chuanfu acknowledged the achievement as a turning point for the company, while Tesla chief executive Elon Musk publicly congratulated BYD, signaling the growing competitiveness of the global EV market.
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