BYD Surpasses Tesla in Global BEV Sales for 2025
In 2025, Chinese automaker BYD officially exceeded Tesla in annual global sales of battery electric vehicles (BEVs), marking a notable development in the electric vehicle market.
BYD reported selling over 2.25 million BEVs, while Tesla delivered approximately 1.64 million units globally.
This outcome positions BYD as the leading BEV manufacturer for the year, a position previously held by the American company.
2025 Sales Performance Overview
BYD announced 2,254,714 all-electric vehicles sold in 2025, representing a 27.9% increase from its 2024 figures. BYD's total vehicle sales across all categories for 2025, which include both BEVs and plug-in hybrids (PHEVs), reached 4,550,036 units.
Of this total, BEVs constituted 49.6%, and PHEVs accounted for 50.4% with 2,288,709 units sold. While BYD's BEV sales increased, its PHEV sales saw a 7.9% decrease compared to 2024.
In contrast, Tesla reported 1,636,129 vehicle deliveries during the same period, indicating an approximate 9% decline from its 2024 sales of 1.79 million units.
This marks Tesla's second consecutive year of declining sales, and its largest annual decrease to date.
Tesla's Market Dynamics and Strategic Shifts
Tesla's performance in 2025 was influenced by increased competition and market reception to its product offerings. In October, the company introduced lower-priced versions of its Model 3 and Model Y in the U.S. to address sales. These versions are approximately $5,000 less than premium counterparts but offer reduced range and features.
The company's sales declined in the first three months of 2025, and fourth-quarter sales totaled approximately 418,000 units, a 15.6% decrease from the prior year. This followed record global sales in the third quarter, which saw increased purchases by American consumers prior to the expiration of a $7,500 tax credit on October 1. Industry reports also indicated weak U.S. EV sales across multiple automakers in the final three months of 2025.
Tesla, which typically reports only global sales figures, generates nearly half of its revenue from the U.S. market. Analysts have noted Tesla's reliance on a concentrated product lineup, primarily the Model Y and Model 3, and the absence of new, more affordable platform vehicles as factors affecting its growth trajectory. The company had previously maintained an annual EV production volume growth rate of approximately 50% for a decade.
Elon Musk's Vision and Investor Concerns
Elon Musk's compensation agreement, approved by shareholders in November, is linked to increases in Tesla's sales performance and market valuation over the next ten years. This agreement also includes a target for selling one million humanoid robots within the same timeframe.
Tesla has invested in its "Optimus" robot project and "Robotaxi" self-driving technology, though the robotaxi service rollout has been limited to Austin, Texas, and San Francisco. Concerns regarding Musk's focus due to his diverse business portfolio, which includes X, SpaceX, and The Boring Company, have been raised by some investors. Musk has indicated plans to reduce his involvement in government activities, following earlier discussions and public opposition related to his role within the U.S. government, which coincided with protests outside Tesla showrooms in early 2025.
BYD's Global Ascent Amidst Domestic Challenges
BYD achieved its sales milestone amid significant competition and price reductions in its domestic market, China.
The company's total vehicle sales growth rate for 2025 was its slowest in five years. Despite this, BYD maintained its position as China's best-selling automaker for the fourth consecutive year, although its total sales of 4,602,436 vehicles for the year were below its publicly stated target of 5.5 million units. December 2025 also saw a decline in its EV sales figures.
International Expansion and Domestic Market Share
The Shenzhen-based company has expanded its international presence, reporting over 1 million exports for the first time in 2025, a 150% increase from the previous year. This expansion includes regions such as Latin America, Southeast Asia, and parts of Europe, occurring despite tariffs imposed by various countries on Chinese EVs.
As of October 2025, BYD identified the UK as its largest market outside China, reporting an 880% increase in sales there through September, driven by demand for its Seal U plug-in hybrid SUV. The company's export total for 2025 included the first vehicle from its premium Denza brand, shipped to Australia. As of November 2025, BYD was the second-highest-selling Chinese brand in Australia.
BYD's market share in China decreased from a peak of 35% in 2023 to 29% in the first 11 months of 2025, with sales in China declining by more than 5% during that period. BYD also reported profit declines during the second and third quarters of 2025. BYD founder and CEO Wang Chuanfu attributed the domestic sales slowdown to challenges in maintaining its technological lead and product differentiation, indicating plans to unveil new technologies.
Broader Chinese Automotive Market Context
China is projected to become the world's leading car manufacturing nation in 2025, surpassing Japan.
The Chinese automotive market remains highly competitive, with approximately 150 car brands and over 50 EV manufacturers. Chinese automakers have faced challenges including the imposition of automotive tariffs in European and United States markets, increased domestic price competition, and stricter regulatory oversight. Government intervention has also addressed practices such as 'zero mileage' cars.
Rivals such as Geely, China's second-largest EV producer, Leapmotor, and newcomer Xiaomi, which launched its first EV in 2024, have incrementally reduced BYD's domestic market share. Geely's sales in China, for example, increased by nearly 90% in the first 11 months of 2025. Among other Chinese brands, Geely and Leapmotor met or exceeded their sales targets for 2025.
Stock Market Reaction
Shares of Tesla (TSLA) rose by 1.2% in early trading on the Friday following the sales announcements and concluded 2025 with an 18.6% annual increase. Investor focus appeared to be on Elon Musk's projected plans for a Robotaxi fleet and humanoid robots.