Has the EV Crown Changed Hands as BYD Speeds Past Tesla in 2025?
The global EV race has a new winner, and it’s not Tesla anymore. According to Reports, the Chinese manufacturer BYD overtook the American company in full-year electric vehicle sales in 2025, becoming the world’s highest-selling EV maker. While Tesla faced an unexpected setback with its first-ever annual decline in deliveries, BYD continued to surge ahead with strong growth in electric vehicle sales. Tesla’s sales in the U.S. declined partly due to the reduction in federal tax credits, though the company has announced that it will not remove customers from the waiting list if they have already paid their deposit.
Meanwhile, Tesla has begun work on its new factory in Mexico, which CEO Elon Musk claims will soon be its largest facility, producing half a million cars a year. Most importantly, the turning point in the EV market is here, whether Tesla is losing its edge, or China’s electrification push is simply irresistible. With supply chains, scale, and strategy favouring BYD, the big question for 2026 is straightforward: can Tesla regain the lead, or has the transfer of EV royalty officially occurred?
A Side-By-Side Look At Tesla And BYD’s 2025 Performance
| Metric | Tesla (2025) | BYD (2025) |
|---|---|---|
| Total Vehicle Deliveries | 1.63 million units | 4.6 million units |
| Year-on-Year Change | –8.6% | +7.7% |
| EV Deliveries | Not specified separately | 2.25 million units |
| EV Sales Growth | Decline overall | +28% |
| Production Volume | 1.73 million units | Not specified |
| Production Change | –6.7% | — |
| Market Position | Facing intensified competition | World’s largest EV seller |
| Key Competitors | World, hyundai | Tesla, global EV makers |
| Growth Trend | Slowing | Rapid expansion |
China’s Competitive Advantage
Cui Dongshu, secretary-general of the China Passenger Car Association, told Global Times that Chinese manufacturers “continue to invest in R&D, rapidly advance their technologies, build a complete industrial chain based on China’s advanced manufacturing base, and benefit from a well-established domestic market, infrastructure, and policy measures that support industry growth.” Even Tesla relies on its China gigafactory to meet delivery targets, highlighting the strategic importance of the region.
Outlook for Chinese EV Makers
Analysts predict that Chinese EV manufacturers will continue to maintain a competitive edge in global deliveries as their supply chains and industrial ecosystems expand, further challenging Tesla and other international rivals in the electric vehicle market.
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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