Once Dismissed by Musk, China’s BYD Surges Past Tesla in Landmark EV Sales Victory
Elon Musk once publicly dismissed Chinese automaker BYD in 2011, questioning the quality of its vehicles and downplaying it as a competitor. That skepticism has now been overturned. In 2025, BYD overtook Tesla to become the world’s largest seller of electric vehicles on a calendar-year basis, selling 2.26 million battery-electric vehicles—up nearly 28% year-on-year—compared to Tesla’s 1.64 million deliveries, which marked an 8% annual decline and Tesla’s second consecutive yearly drop.
Tesla’s challenging 2025 was shaped by multiple headwinds, including intensifying competition from Chinese EV makers, the phase-out of the $7,500 US EV tax credit, aging product models, and reputational issues linked to Musk’s political statements. Fourth-quarter deliveries fell around 16% year-on-year, underperforming earlier expectations. While some analysts noted Tesla still exceeded certain forecasts, the company struggled in key markets, particularly Europe and the US, as policy and political factors weighed on demand.
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From Mockery to Market Leader: BYD Overtakes Tesla as World’s Top EV Seller in 2025
By contrast, BYD’s ascent reflects a long-term strategy centered on affordability, scale, and vertical integration. Founded in 1995 as a battery manufacturer, BYD now dominates China’s EV market and is rapidly expanding overseas, exporting more than 1 million vehicles in 2025—a 150% annual increase. With new plants planned in Brazil and Hungary, BYD is strengthening its global footprint despite tariff barriers. Although potential policy changes in China could pressure low-cost models in 2026, analysts believe BYD’s diversified lineup and premium sub-brands position it well, marking a historic shift in the global EV power balance.
