Tesla loses EV crown to China’s BYD

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Tesla lost its crown as the world’s biggest electric-vehicle maker in 2025, as it was overtaken by Chinese rival BYD following a second year of declining vehicle sales.

Elon Musk’s carmaker delivered 1.64mn fully electric vehicles last year, a 9 per cent fall from the 1.79mn it shipped in 2024.

BYD said on Thursday that it sold 2.26mn pure EVs in 2025, up 28 per cent from a year earlier following its expansion in Europe and other overseas markets.

The Chinese group had previously outsold Tesla on a quarterly basis but Friday’s figures mean it has now overtaken its US competitor for annual deliveries of fully electric models.

While Tesla increased its sales every year between 2011 and 2023, Friday’s figures represent its second consecutive annual drop.

The company has come under heavy pressure following the cancellation of US tax credits for EV purchases, a backlash from some consumers over Musk’s political activities and the public falling out between the world’s richest man and US President Donald Trump.

The company said on Friday that it delivered 418,227 vehicles in the final quarter of 2025, down 16 per cent from the same period a year earlier and below market expectations for 423,000 vehicles.

Earlier this week, Tesla took the unusual step of releasing analyst forecasts for its annual deliveries before the official announcement in what appeared to be an attempt to manage market expectations.

Tesla has tried to rejuvenate sales with a refreshed edition of its flagship Model Y as well as a cheaper, stripped-down version. But the recovery has not been as strong as the company had hoped in the face of an influx of more affordable EVs from Chinese and western rivals.

As its traditional automotive business has declined, Musk has made a strategic pivot towards autonomous driving, artificial intelligence and robotics.

Investor hopes for its self-driving robotaxi business had catapulted its share price to an all-time closing high of $489.88 in mid-December. The shares ended 2025 at just under $450.