BYD Overtakes Tesla as World's Biggest EV Maker in 2025
In 2025, Chinese electric vehicle manufacturer BYD overtook Tesla as the world's largest EV maker by sales volume. BYD sold 2.26 million vehicles globally, surpassing Tesla's total of 1.64 million.
Tesla's deliveries declined by 9% year over year, with Q4 2025 shipments totaling 418,227 units, below analyst consensus of 440,000. This drop is partly attributed to the end of a $7,500 tax credit phased out by the Trump administration in late September, which potentially weighed on sales.
Despite the sales decline, Tesla's stock rose approximately 11% over the year. In October, the company unveiled new, lower-priced versions of its Model Y (around $40,000) and Model 3 (around $37,000) to boost sales and compete in European and Asian markets dominated increasingly by Chinese models.
Analysts forecast a further 3% decline in Q4 2025 sales and an anticipated 40% drop in earnings per share, before a rebound is expected later in 2026.
Additionally, there are notable developments concerning Elon Musk. In November 2025, a shareholder vote could approve a $1 trillion pay package for him contingent on Tesla hitting performance targets over the next decade. Also, the Delaware Supreme Court reversed a 2018 ruling that had denied Musk a $55 billion Tesla pay package.
