China's BYD became the world leader in electric vehicle sales in 2025, overtaking US company Tesla for the first time. According to Bloomberg and CNBC, Tesla's electric vehicle deliveries fell by 8.6% year-on-year, from 1.79 million vehicles in 2024 to 1.64 million in 2025.
In particular, Tesla's sales in the fourth quarter of 2025 fell by 16% year-on-year to 418,000 vehicles. BYD's sales in the same period increased by 28% to 2.26 million electric vehicles.
Tesla is reportedly under pressure due to increased competition, the elimination of electric vehicle subsidies in the US and the negative reaction of some consumers to the political activities of the company's CEO Elon Musk. In addition, the company is said to be experiencing a shortage of "truly new and affordable" models.
However, Tesla saw record sales in the third quarter of 2025. The expiration of the $7,500 federal tax credit in the United States on September 30, 2025, temporarily boosted sales, spurring buyers to buy. However, BYD's sales in the same quarter exceeded Tesla's by 17%.
It should be noted that in October 2025, Tesla shareholders approved a $1 trillion bonus package for Elon Musk if he meets strategic goals. The company's management said that otherwise, Tesla could face a significant loss in value.
