Kathmandu. China’s BYD has overtaken Elon Musk’s Tesla as the world’s largest electric vehicle (EV) seller. This is the first time that BYD has surpassed its U.S. rival in annual sales.
Tesla reported on Friday that its car sales in 2025 fell nearly 9 percent to 1.64 million units worldwide. This is the second year in a row that the company has recorded a decline in car deliveries.
These figures put Tesla behind BYD. The company said on Thursday that its battery-powered car sales rose nearly 28 percent last year to more than 2.25 million units.
It’s been a challenging year for U.S. companies. The reasons were mixed reactions to new products, discomfort with Musk’s political activities and increasing competition from Chinese rivals.
In the last quarter of 2025, Tesla’s car sales fell 16 percent. This decline was partly due to the removal of government subsidies. It reduced the price of some battery-electric, plug-in hybrid or fuel-cell vehicles by up to $7,500.
Wall Street analysts have slashed Tesla’s sales forecast for 2026. This indicates growing pessimism about the company’s future.
Why is BYD outpacing Tesla?
Chinese companies such as Geely, MG and BYD are now the country’s largest electric car makers. These companies have put pressure on Western rivals by pricing their vehicles lower than established brands.
In October, Tesla launched cheaper versions of two of its best-selling models in the US in an effort to boost sales. Already the world’s richest man, Musk faces the responsibility of significantly increasing Tesla’s sales and stock market value in order to secure a record-breaking pay package over the next decade. The deal, approved by shareholders in November, could see him receive a maximum payout of $1 trillion.
Under the deal, Musk will also have to sell 1 million humanoid robots over the next 10 years. Tesla has invested heavily in its Optimus products and self-driving robotaxis.
According to analysts, Tesla’s rollout of robotaxi and self-driving technology in 2026 helped propel its stock price to record levels. This will be important for the company’s performance.
While major questions remain about Tesla’s self-driving ambitions, there are some optimism. Dan Ives of Wedbush Securities says Tesla will capture about 70 percent of the self-driving market over the next decade. Because no other company in the world can match its scale and scope. ’
In addition to Tesla, Musk’s business interests include social media platform X, rocket company SpaceX and tunneling company The Boring Company.
Keeping himself out of politics, Musk
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Since Musk’s appointment early last year to lead U.S. President Donald Trump’s government’s efficiency department, some investors suggested Musk might not pay enough attention to Tesla. Musk then stepped back from his role in the U.S. government.
Although BYD has grown in recent years, its sales growth in 2025 was the lowest in five years. This is partly due to stiff competition in its key market, China.
However, BYD has overtaken Tesla in car sales. The U.S. company has been more profitable in recent quarters.
However, BYD remains a global EV powerhouse. Because its prices are often lower than rival carmakers.
The Shenzhen-based company’s rapid expansion comes at a time when many countries are imposing high tariffs on Chinese EVs, especially in Latin America, Southeast Asia and parts of Europe. In October, BYD said the UK was now its largest market outside of China. ’
According to the company, its sales in the UK rose by 880% year on year to the end of September, mainly due to strong demand for the plug-in hybrid version of its ‘Seal U’ sports utility vehicle (SUV). –from BBC
