In a landmark development for the global automotive industry, Chinese electric vehicle manufacturer BYD has dethroned Elon Musk’s Tesla as the world’s premier electric vehicle seller by annual sales volume. This represents the first occasion where the Shenzhen-based automaker has outperformed its American competitor in yearly deliveries.
BYD’s official figures released Thursday revealed a substantial 28% year-over-year increase in battery-electric vehicle sales, culminating in over 2.25 million units sold throughout 2025. Meanwhile, Tesla is anticipated to report approximately 1.65 million vehicle sales for the same period when it discloses its official results Friday, according to previously published analyst projections.
Tesla’s challenging year has been characterized by several compounding factors, including tepid market reception to its latest vehicle offerings, growing apprehension regarding Musk’s political engagements, and increasingly fierce competition from Chinese EV manufacturers. In response to mounting competitive pressures, Tesla implemented strategic pricing adjustments in October, introducing more affordable variants of its top-selling models in the American market.
The leadership transition occurs amid Musk’s pursuit of an unprecedented compensation package potentially worth up to $1 trillion, contingent upon his ability to dramatically elevate Tesla’s sales performance and market valuation over the coming decade. Shareholders initially approved this ambitious incentive structure in November.
BYD’s remarkable ascent to global EV dominance has been fueled by its competitive pricing strategy and rapid international expansion across Latin America, Southeast Asia, and European markets. This growth persists despite numerous nations implementing substantial tariffs on Chinese-manufactured electric vehicles. Notably, the United Kingdom emerged as BYD’s largest overseas market in October, with sales skyrocketing by 880% through September, primarily driven by robust demand for the plug-in hybrid version of its Seal U SUV.
Musk continues to oversee his diverse portfolio of ventures beyond Tesla, including social media platform X, aerospace manufacturer SpaceX, and infrastructure firm The Boring Company.