BYD surpasses Tesla in 2025 EV sales, claiming global lead for first time

China's BYD has zoomed past Elon Musk's Tesla to become the world's top electric vehicle (EV) seller in 2025, achieving annual sales dominance over its US rival for the first time.

BYD announced on Thursday that its battery-powered vehicle deliveries climbed nearly 28% last year to over 2.25 million units.

Tesla, set to disclose its full-year figures later on Friuday, previously indicated around 1.65 million vehicles sold based on analyst projections .

Tesla endured a challenging 2025, grappling with lukewarm responses to new models, backlash against Musk's political involvement, and fierce pressure from Chinese competitors.

The company rolled out cheaper variants of its flagship Model 3 and Model Y in October to revive demand, addressing critiques of its delayed push into affordable EVs.

Musk, already the planet's wealthiest individual, faces pressure to dramatically lift Tesla's sales and valuation to unlock a shareholder-approved compensation package potentially worth up to $1 trillion over the next decade .

Early-year woes intensified after Tesla's Q1 sales dropped amid investor concerns over Musk's divided attentions.

These included his leadership in US President Donald Trump's Department of Government Efficiency (DOGE), alongside commitments to X (formerly Twitter), SpaceX, and the Boring Company.

Investors worried Musk's sprawling empire diluted his Tesla focus, but he has since vowed to sharply reduce his government role.

BYD's ascent continues despite headwinds. The Shenzhen giant saw its slowest sales growth in five years in 2025, squeezed by domestic rivals like XPeng and Nio in China.

Yet its aggressive pricing keeps it a global force, fuelling expansions into Latin America, Southeast Asia, and Europe — often defying steep tariffs on Chinese EVs.

In October, BYD named the UK its largest non-China market, with British sales exploding 880% through September, propelled by the plug-in hybrid Seal U SUV .