Tesla finally loses its crown as BYD sells 2.26 million electric cars

In 2025, Tesla, the electric vehicle pioneer founded by the world’s richest man, Elon Musk, finally lost its crown as the world’s best-selling electric car brand. According to a statement by Chinese automaker BYD (Build Your Dreams), published on Friday, it sold 2.26 million electric vehicles last year, up 28 % year on year.

Tesla, by contrast, announced on Friday that it had delivered 1.64 million vehicles. This meets the company’s estimates, but represents an 8 % decline from 2024. This is the second consecutive year in which the number of Tesla vehicles delivered has fallen. (In its statements, Tesla refers to “deliveries”, but its shareholder reports do not clearly define whether these represent sales. They are, however, considered the closest indication of how many of these cars the company actually sold.)

While the two automakers’ results were very similar in 2024, 2025 appears to confirm the narrative of Chinese electric vehicles making major inroads into the global market. BYD is indisputably the leading Chinese automaker and, in addition to electric cars, also sells plug-in hybrids. The company sold 4.55 million vehicles in total last year.

A turbulent year

Tesla shares fell sharply at the start of 2025 in response to the expected competition from Chinese electric vehicles, led by BYD, as well as controversy over CEO Elon Musk’s political involvement. The share price, however, rebounded to the point where it was close to a record high of nearly 490 USD per share in December. It has edged down slightly since then.

It is worth noting, however, that Elon Musk is promising robots and self-driving taxis, not necessarily dominance in the electric vehicle market. Tesla’s future in the electric vehicle sector remains uncertain. Competition from China, however, looks set to become a permanent feature of the global market.

China’s top automaker and the European market

The narrative of Chinese electric vehicles dominated 2025, with BYD almost always at the center of it. Western automakers’ share of the Chinese market is declining.  Although we do not yet have complete data, a decline can also be expected for 2025. Chinese automakers are increasingly looking to Western markets, particularly Europe.

In recent years, production capacity has increasingly been expanded into Europe. Automakers want to avoid tariffs and continue their efforts to enter the European market. BYD plans to open a car factory in Hungary next year. The company also already operates a factory for electric buses and trucks in the city of Komárom.

Leapmotor, meanwhile, plans to start production of its B10 model in Spain in partnership with Stellantis (which owns a 20% stake in the company). Many other companies are at various stages of preparing to start production in the EU. In the UK, according to estimates, one in every ten cars sold last year was made by a Chinese manufacturer.