- BYD has overtaken Tesla to become the world's biggest EV seller after the US automaker projected sales to decline by nearly 9 percent in 2025.
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check offers Chinese EV giant BYD Co overtook Tesla Inc to take the title of the world's number one electric vehicle seller after the US-based company reported a nearly 9 per cent decline in annual sales. Tesla's second consecutive decline in annual sales comes amid the expiration of US tax credits for EV purchases as well as the political influence of CEO Elon Musk. The company expects to sell 1.6 million EVs in 2025 after reporting a 16 percent decline in deliveries during the fourth quarter.
By contrast, BYD reported a 28 percent increase in EV sales to 2.64 million, with slightly less than half of its portfolio being electric. Its total sales increased by 7.7 percent at the end of the year, bringing its global lineup to 4.6 million.
For years, Tesla has been way ahead of its rivals in the EV sector, be it development or sales. With the rate at which the market has grown in the last decade, the scope of competition has increased significantly. At the same time, the rise of Chinese EV makers on the global stage has proven detrimental to the sales figures of brands in the rest of the world.
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Tesla's troubles and the way forward
Tesla sales in the fourth quarter have been hit by the expiration of a $7,500 EV subsidy that was phased out by the Donald Trump-led administration. During the period, it sold 4,18,227 units globally, which was below analysts' expectations. Model 3 and Model Y EVs accounted for more than 90 percent of the total.
The brand faced widespread criticism over Musk's embrace of American politics and his association with the Trump presidency and later leading the controversial Department of Government Efficiency. DOGE was established to cut down on 'wasteful' federal spending and bureaucracy. To date, it has canceled thousands of federal contracts and grants worth billions, and these include more than 5,000 USAID grants, awards and contracts, as well as millions in research and education grants.
Musk's political support and DOGE leadership have significantly hurt Tesla's sales, drawing criticism from environmentalists and environmentally conscious buyers and prompting protests at facilities. As of May 2025, Musk has resigned from his leadership role at the agency, in what is largely seen as a move to ease investor outrage. The CEO is now repositioning Tesla to become a major player in future autonomous vehicles, AI and humanoid robots.
Meanwhile, a new top dog in the EV sector is trying to secure its position on the throne. BYD is currently preparing to launch a facelift and a series of new-gen models to keep things fresh amid competition from other Chinese players like Geely, SAIC and Xiaomi.
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First publication date: 04 January 2026, 17:07 PM IST