China’s BYD has overtaken Elon Musk’s Tesla to become the world’s largest electric vehicle (EV) seller, marking the first time it has surpassed its US rival in annual sales. Now, China’s BYD has become an electric car manufacturer in 2025, while Tesla has reported a drop in deliveries at the end of the year. Reports have made a buzz over the internet and in the vehicle industry. We’ve shared all the details below in this article, so keep reading.
What are the latest reports?
As per the latest reports of 2 January 2026, Tesla shared its sales report of lower sales expected in the fourth quarter of 2025, ceding its position as the world’s biggest electric vehicle company in annual sales to Chinese auto giant BYD. Tesla delivered 418,227 electric vehicles in the fourth quarter of the year, bringing its full-year sales figure to about 1.64 million electric vehicles, indicating a roughly 9% decline in sales in 2025. BYD released its sales report a day earlier, on January 2, 2026, and reported that it sold 2.26 million electric vehicles last year, registering a 28% increase in sales. Below, we shared a chart to easily understand the sales performance.
Sales Performances chart
| China’s BYD | Elon Musk’s Tesla | |
| Annual Sales | 2.26 million | 1.64 million |
| Year-over-Year | +28% increase | -8.6% decrease |
| Total Production | ~4.6 million (incl. Hybrids) | 1.65 million |
Why does Tesla face low sales?
Demand for electric vehicles in the US is expected to reach equilibrium levels, and will take time after the elimination of a $7,500 US tax credit at the end of September 2025, which led to off the price of certain battery electric, plug-in hybrid, or fuel cell vehicles. But even before that, Tesla had suffered a decline in sales in key markets, due to CEO Musk’s political support for US President Donald Trump and other far-right politicians. It was a tough year, with mixed responses to new products and continued unease about growing competition from Chinese rivals. Tesla faces increasing competition from BYD and other Chinese companies, as well as European giants.
Other reports
On Thursday, Shenzhen-based BYD, which also produces hybrid cars, unveiled record electric vehicle sales in the past year. BYD has now become the most sold EV vehicle in the last year, and the Telsa ranks second as per its sales reports. As per the changing world, most people like electric vehicles over petrol vehicles. Stay connected to read more articles on the latest news topics.
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