BYD Overtakes Tesla as World's Biggest Electric Vehicle Maker in 2025
Chinese automaker BYD has surpassed Tesla to become the world's biggest electric vehicle (EV) maker, selling 2.26 million vehicles in 2025. Tesla's deliveries fell to 1.64 million, representing a 9% decline year-on-year.
Tesla's loss of the top spot follows a challenging year marked by concerns over CEO Elon Musk's political activities and intensified competition overseas. In the fourth quarter of 2025, Tesla sold 418,227 vehicles, below the FactSet consensus estimate of 440,000.
Additionally, the phase-out of the $7,500 tax credit by the Trump administration at the end of September 2025 likely put further pressure on Tesla's sales. In response, Tesla introduced cheaper versions of its Model Y (approximately $40,000) and Model 3 (around $37,000) in late 2025, targeting increased demand in Europe and Asia.
Analysts forecast a further 3% decline in Tesla's Q4 2025 sales and expect earnings per share to drop nearly 40%. However, some predict a potential rebound later in 2026.
In November 2025, Musk won a shareholder vote approving a $1 trillion pay package contingent on hitting specific targets over ten years. This follows a previous $550 billion pay package from 2018 that was reversed by the Delaware Supreme Court.
