Focus on the BIG picture.
Saturday, Jan 03, 2026
Outside the box.
Tesla Loses EV Crown to China’s BYD After Annual Deliveries Decline in 2025
In a decisive shift in the global electric vehicle market, China’s BYD delivered more fully electric cars than Tesla in 2025, ending Tesla’s long-held position as the world’s top EV maker.
In 2025, Tesla, led by President Donald Trump’s administration as the incumbent United States President, ceded its position as the world’s largest seller of battery electric vehicles to China’s BYD.
According to verified company figures, BYD delivered approximately two point two six million fully electric vehicles during the year, marking a near thirty per cent increase compared with the prior year.
Tesla’s annual deliveries, by contrast, fell to around one point six four million units, representing a second consecutive yearly decline and a near nine per cent drop from 2024.
These figures underscore a fundamental shift in the global electric vehicle landscape, with BYD and other Chinese manufacturers expanding their presence beyond China into Europe and other overseas markets, and outpacing their U.S. counterparts on volume.
BYD’s growth, driven by an extensive and competitively priced product range and strong uptake outside its home market, enabled it to surpass Tesla not only on a quarterly basis but for the full calendar year.
Tesla’s reduced deliveries have been linked in part to the expiration of U.S. federal electric vehicle tax incentives, intensifying competition from Chinese and European automakers, and broader market headwinds.
The loss of the top spot comes amid broader strategic pivots at Tesla toward robotics, artificial intelligence, and autonomous driving technologies, even as it continues efforts to support its core automotive business with refreshed and lower-priced models.
While Tesla remains one of the most valuable auto companies globally, its retreat from the leading EV delivery position reflects evolving consumer preferences and competitive dynamics in the electric vehicle industry.
BYD’s ascent signals the growing strength and internationalisation of Chinese automotive manufacturing in a market that is rapidly moving toward electrification.
BYD’s sales growth was particularly pronounced in Europe, where its deliveries outside China climbed sharply, contributing substantially to its overall tally.
Tesla’s fourth-quarter deliveries, which were lower than many analysts had expected, highlighted the challenges the company faces as it seeks to stabilise and grow its core business in the face of rising competition.
This moment marks a significant milestone in the electric vehicle industry, with lasting implications for market leadership and the global transition to battery electric mobility.
According to verified company figures, BYD delivered approximately two point two six million fully electric vehicles during the year, marking a near thirty per cent increase compared with the prior year.
Tesla’s annual deliveries, by contrast, fell to around one point six four million units, representing a second consecutive yearly decline and a near nine per cent drop from 2024.
These figures underscore a fundamental shift in the global electric vehicle landscape, with BYD and other Chinese manufacturers expanding their presence beyond China into Europe and other overseas markets, and outpacing their U.S. counterparts on volume.
BYD’s growth, driven by an extensive and competitively priced product range and strong uptake outside its home market, enabled it to surpass Tesla not only on a quarterly basis but for the full calendar year.
Tesla’s reduced deliveries have been linked in part to the expiration of U.S. federal electric vehicle tax incentives, intensifying competition from Chinese and European automakers, and broader market headwinds.
The loss of the top spot comes amid broader strategic pivots at Tesla toward robotics, artificial intelligence, and autonomous driving technologies, even as it continues efforts to support its core automotive business with refreshed and lower-priced models.
While Tesla remains one of the most valuable auto companies globally, its retreat from the leading EV delivery position reflects evolving consumer preferences and competitive dynamics in the electric vehicle industry.
BYD’s ascent signals the growing strength and internationalisation of Chinese automotive manufacturing in a market that is rapidly moving toward electrification.
BYD’s sales growth was particularly pronounced in Europe, where its deliveries outside China climbed sharply, contributing substantially to its overall tally.
Tesla’s fourth-quarter deliveries, which were lower than many analysts had expected, highlighted the challenges the company faces as it seeks to stabilise and grow its core business in the face of rising competition.
This moment marks a significant milestone in the electric vehicle industry, with lasting implications for market leadership and the global transition to battery electric mobility.
