Tesla Sees Sharp Sales Drop in 2025 as BYD Takes Global EV Lead

Tesla has reported its weakest sales performance of 2025, marking a major shift in the global electric vehicle market. For the first time in years, the Elon Musk-led company has lost its position as the world’s top EV seller, overtaken by Chinese automaker BYD.

BYD, headquartered in Shenzhen, posted a strong year with sales rising 28 percent to 2.26 million vehicles. Tesla, in contrast, delivered 1.64 million units, reflecting a decline of 8.5 percent over the same period.

The gap highlights how quickly the EV landscape is changing. BYD’s growth has been driven by a wide and flexible product lineup. Its portfolio stretches from premium electric supercars priced around $200,000 to affordable mass-market models like the Seagull hatchback, which sells for roughly $7,800 in China.

Beyond pricing, technology has played a major role in BYD’s momentum. The company has drawn attention with innovations such as ultra-fast EV charging that takes just five minutes and the inclusion of autonomous driving features at no additional cost.

Tesla continues to be a major force in the electric vehicle space, but the 2025 numbers suggest increasing pressure from competitors that are moving faster on affordability, feature expansion, and scale. As EV adoption accelerates worldwide, the competition for leadership is becoming more intense, with BYD now firmly in the spotlight.