Elon Musk’s Tesla has lost its long-held position as the world’s largest electric vehicle (EV) manufacturer, as China’s BYD surged ahead to dominate the global EV market in 2025.
According to industry figures, BYD sold approximately 2.26 million electric vehicles worldwide in 2025, overtaking Tesla’s 1.64 million units. The milestone marks a significant shift in the global EV landscape and highlights the growing influence of Chinese automakers in the clean mobility sector.
Tesla’s sales declined for the second consecutive year, weighed down by multiple challenges. These include the expiration of key U.S. tax incentives, increasing consumer criticism, intensified competition, and the impact of global political and economic tensions on demand and supply chains.
In contrast, BYD strengthened its footprint in Europe and other international markets, capitalizing on competitively priced, technologically advanced models tailored to diverse consumer needs. Its aggressive global expansion strategy and broad product portfolio enabled the company to attract cost-conscious buyers and gain market share at Tesla’s expense.
Market analysts suggest that Tesla’s recovery in 2026 may remain limited, as the company undergoes a strategic transition. Elon Musk is increasingly shifting focus toward autonomous driving technologies, artificial intelligence, and robotics, potentially redefining Tesla’s long-term vision beyond traditional vehicle sales.
BYD’s rise underscores a broader transformation in the electric vehicle industry, where Chinese manufacturers are rapidly setting new benchmarks in scale, affordability, and innovation—reshaping competition and redefining leadership in the global EV race.
 manufacturer, as China’s BYD surged ahead to dominate the global EV market in 2025.According to industry figures, BYD sold approximately 2.26 million electric vehicles worldwide in 2025, overtaking Tesla’s 1.64 million units. The milestone marks a significant shift in the global EV landscape and highlights the growing influence of Chinese automakers in the clean mobility sector.){kind=link}