China’s BYD has overtaken Tesla as the world’s largest electric carmaker in 2025, after the US company reported a slump in deliveries. BYD sold 2.26 million battery electric cars during the year, easily outstripping the 1.63 million deliveries reported by Tesla.
The shift marks a symbolic moment in the rise of China’s car companies, which have used the transition to electric vehicles to try to dominate the global automotive industry. Chinese car exports have grown in recent years, led by BYD and rivals such as state-owned SAIC and Chery.
Tesla’s sales appear to have suffered largely due to the withdrawal of electric vehicle subsidies by US President Donald Trump, who also removed emissions regulations that incentivised electric car production. Tesla also faced a backlash from some consumers after Elon Musk’s embrace of far-right politics in late 2024. Tesla’s deliveries slumped to 418,200 in the final quarter, below analysts’ forecasts, and annual sales fell by 9% compared with 2024.
Despite the sales decline, Tesla remains the world’s most valuable carmaker, with a share value of $1.4tn. Investors appear to bet that Musk will lead Tesla to become a leading force in robotics and artificial intelligence. However, BYD and other Chinese companies already offer comparable autonomous technology, including BYD’s “God’s Eye” system on its cheapest cars.
BYD’s electric car sales rose by 28% during the year, despite a weaker December. The Shenzhen-headquartered manufacturer, founded in 1995 as a battery company, recorded 4.55 million car sales overall in 2025, including plug-in hybrids and commercial vehicles.
