Beijing: China’s BYD has overtaken Elon Musk’s Tesla to become the world’s largest seller of electric vehicles (EVs) for the first time. The company reported that sales of its battery-powered cars rose nearly 28% last year, reaching more than 2.25 million units.
Tesla, which is expected to announce its full 2025 sales later this week, had analyst estimates suggesting it sold around 1.65 million vehicles for the year. The US company faced a difficult year due to a mixed reception to new models, concerns over Musk’s political activities, and growing competition from Chinese rivals.
In October, Tesla introduced lower-priced versions of its two best-selling models in the US in a bid to boost sales, responding to criticism that it had been slow to release more affordable options to remain competitive.
Celebrating two historic achievements: BYD delivered more than 4.6 million New Energy Vehicles in 2025, proudly claiming the Global Sales Champion. For the first time, BYD's overseas sales have surpassed 1 million units in a single year.
Together with our customers worldwide,… pic.twitter.com/iondAvVXW8
— BYD Global (@BYDGlobal) January 1, 2026
Musk, already the world’s richest man, is tasked with significantly increasing Tesla’s sales and stock market value over the next decade to secure a record-breaking pay package approved by shareholders in November, which could total as much as $1 trillion (£740 billion).
Tesla’s sales suffered in the first quarter of 2025 after a backlash against Musk’s role in US President Donald Trump’s administration. Besides Tesla, Musk’s business interests include the social media platform X, rocket company SpaceX, and the Boring Company, which builds tunnels.
His involvement in these ventures, along with running Trump’s Department of Government Efficiency (Doge), led some investors to question whether he was focusing enough on Tesla. Since then, Musk has pledged to significantly reduce his role in the US government to prioritize Tesla’s operations and growth.
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