Tesla is no longer the world’s largest electric vehicle (EV) maker. China’s BYD outsold Tesla in 2025, marking the first time the American company has lost its top spot.
Decline in Tesla Deliveries
In its fourth-quarter report, Tesla said it produced 434,358 vehicles and delivered 418,227 from October to December 2025. This represents a 16% drop from the same period in 2024 and fell short of Wall Street’s estimate of 426,000 deliveries.
For the full year, Tesla delivered 1.63 million cars, down more than 8.5% compared to 2024. The company ended 2025 with roughly 600,000 fewer deliveries than BYD.
BYD’s Record Year
BYD, a Chinese EV maker, delivered 2.26 million electric vehicles in 2025, up 28% from the previous year. Including plug-in hybrids, BYD sold 4.54 million vehicles in total, almost twice as many as Tesla. Last year, BYD had narrowly trailed Tesla, with 1.76 million deliveries compared to Tesla’s 1.79 million.
Market Reaction
Tesla’s stock dropped more than 3% on Friday and has fallen over 10% in the past five trading days.
Elon Musk on Chinese Competition
Tesla CEO Elon Musk previously underestimated BYD. In 2011, he said BYD’s products and technology were weak. However, Musk has softened his stance in recent years, acknowledging in 2021 that Chinese EV makers work “the hardest and smartest.” By 2024, he warned that without trade barriers, Chinese EVs could dominate global markets.
Challenges in 2025
Tesla faced a difficult year, including public backlash over Musk’s political involvement, protests targeting Tesla vehicles, and changes to U.S. federal EV incentives. These factors contributed to the company’s sales slump.
Tesla now faces stiff competition as BYD continues to expand, reshaping the global electric vehicle market.
