China’s BYD overtook Elon Musk’s Tesla as the world’s leading electric vehicle (EV) seller in 2025, as Tesla faced declining sales for a second year in a row.
BYD said Thursday that it sold about 2.26 million EVs in 2025, up nearly 28 percent from the year before. In a release Friday, Tesla said it delivered about 1.64 million EVs last year, down around 9 percent from 2024.
Musk’s EV firm also saw a 16 percent drop in quarterly sales, delivering about 418,000 cars in the fourth quarter compared to 497,000 in the previous three-month period.
Tesla’s struggling sales come after a particularly rocky year for the company. The EV maker became a political symbol for Musk’s controversial work with the Trump administration, leading the Department of Government Efficiency’s cost-cutting efforts.
After the company posted a steep 71 percent drop in earnings in the first quarter, Musk announced his plans to step away from the White House. Investors breathed a sigh of relief as Tesla’s stock began to recover after sharp losses in the first few months of the year.
However, the reprieve was short-lived, as Musk continued to stir controversy that weighed heavily on Tesla. Shortly after leaving the White House, the tech billionaire began publicly feuding with President Trump over his tax and spending bill, resulting in Musk’s vow to launch a third party.
Musk and Trump appear to have since mended fences, with the Tesla CEO appearing at a White House dinner for the Saudi Crown Prince Mohammed bin Salman in November.
On an earnings call in July, Musk suggested his EV firm could face a “rough” couple of quarters going forward. Tesla and other American EV makers were expected to see weaker sales at the end of the year, after a $7,500 federal EV tax credit expired in September.
