China’s BYD has overtaken Tesla and is now the world’s leading manufacturer of electric cars. This is according to Bloomberg data for the year 2025, during which BYD sold 2.26 million cars against the American company’s 1.64 million.
According to the results of last year, the global market for battery vehicles saw a total growth of 28%, which also led to a shift in the top among manufacturers. The rise of a Chinese manufacturer allowed it to displace the previous sales leader Tesla, writes “Automedia”.
BYD’s expansion strategy has found fertile ground, especially in foreign markets. In 2025, the Chinese giant’s overseas sales jumped to a record 1 million units, an increase of 150% over the previous year. This push, supported by rapid growth in Europe, allowed BYD to deliver almost 2.26 million total electric vehicles (EVs), significantly surpassing Tesla’s 1.64 million. In addition to all-electric models, BYD sold more than 2 million plug-in hybrids for the second year in a row.
For Tesla, 2025 ended as the second year in a row with a decline in annual sales – by 8.6%. The fourth quarter was particularly difficult, with deliveries down 16% (about 418,227 vehicles), below even the most pessimistic analysts’ forecasts. Elon Musk‘s company had to face a perfect storm – increased competition, a product range perceived as outdated and, last but not least, the changed political situation in the US.
In the US, the Trump administration eliminated a $7,500 federal tax credit for electric car purchases and eased emissions regulations, depriving Tesla of billions of dollars in regulatory credit revenue. Added to this are the controversies related to Musk’s political rhetoric and his active role in governance, which would cause a negative reaction among consumers in North America and Europe.
To try to stem the loss of volumes, Tesla introduced cheaper “standard” versions of the Model Y and Model 3, a move that partially disappointed investors hoping for an entirely new mainstream product.
Despite the decline in its core auto business, Wall Street appears to have unwavering confidence in the company’s future, valuing it no longer as a simple carmaker but as an artificial intelligence and robotics company.Tesla shares ended 2025 up 11% as investors focused on future projects such as Cybercab, the autonomous two-seater taxi, and the robotaxi service, which has begun testing in cities such as San Francisco and Austin.
Tesla also finds a solid line of defense in the energy sector. In 2025, the company deployed a record amount of energy storage systems, marking significant growth over the previous year. However, the challenge for 2026 remains serious – with analysts cutting forecasts for vehicle sales to about 1.8 million units, Tesla will have to prove that the transformation to artificial intelligence and autonomous driving can compensate for the loss of leadership in the traditional car market.
Follow us on Google News Showcase for breaking news
See all current news from Standartnews.com
