BYD Co (HKG:1211, LSE:0HKY, OTCQX:BYDDY) has overtaken Tesla Inc (NASDAQ:TSLA) to become the world’s largest seller of battery-electric vehicles in 2025, marking the first time the Chinese automaker has led global EV sales over a full calendar year.
BYD reported EV deliveries of approximately 2.25 million vehicles in 2025, representing year-over-year growth of about 28%.
In comparison, Tesla’s full-year EV deliveries are estimated at roughly 1.65 million vehicles, an annual decline of about 8%.
While the two companies have alternated the top position in individual quarters in prior years, including late 2023, 2025 is the first year BYD has surpassed Tesla on an annual basis.
The shift reflects differing trajectories for the two manufacturers over the past year. BYD’s growth was driven by strong demand in China, the world’s largest EV market, alongside expanded sales in Europe, Southeast Asia, and Latin America.
The company’s vertically integrated supply chain, including in-house battery production, has enabled competitive pricing across a wide range of models. In addition to EVs, BYD sells plug-in hybrid vehicles, bringing its total 2025 deliveries of new energy vehicles to about 4.6 million units.
Tesla experienced several headwinds during 2025. Production pauses related to updates to the Model Y affected deliveries earlier in the year, while the expiration of the $7,500 US federal EV tax credit contributed to weaker demand in North America. The company has also been focusing on longer-term initiatives, including autonomous driving technologies, robotaxi development, and humanoid robotics, alongside its core EV business.