China’s BYD has surpassed Tesla to become the world’s largest seller of electric vehicles (EVs) in annual sales. This marks the first time BYD has outpaced its American competitor, with BYD's sales increasing by nearly 28% to over 2.25 million vehicles in 2025. Meanwhile, Tesla's sales declined by almost 9% to 1.64 million vehicles globally.

The downturn for Tesla marks its second consecutive year of declining deliveries, facing challenges from competitive offerings by Chinese brands and the mixed reception of new models. The withdrawal of a beneficial government subsidy further impacted Tesla, leading to a notable 16% sales decline in the last quarter of 2025. Analysts are lowering their Tesla sales forecasts for 2026, predicting a challenging road ahead for the US giant.

In response to the competitive pressure, Tesla launched more affordable versions of its popular models in the US. Elon Musk's ambitious targets for Tesla involve a substantial boost in sales and market value over the next decade, linked to a potential $1tn payout. This includes selling a million humanoid robots and advancing self-driving Robo-taxis—a significant element of Tesla’s strategy, expected to influence its future performance significantly, reported the BBC.

Looking forward, analysts like Dan Ives from Wedbush Securities remain optimistic, projecting Tesla will dominate 70% of the self-driving market within the next decade. Despite Musk diversifying his focus across various ventures, investor concerns persist regarding his attention to Tesla. Furthermore, while BYD's sales growth slowed to its weakest in five years due to Chinese market competition, its strategic pricing continues to disrupt competitors worldwide with significant expansions, notably in the UK.

Key Takeaways

• BYD surpasses Tesla in global electric vehicle sales for the first time in 2025.

• Tesla's sales decline due to subsidy repeal and fierce competition from China.

• BYD's competitive pricing solidifies its status as a global EV powerhouse.

  

Adapted by ASEAN Now from BBC 2026-01-03

 

 

No doubt Elon Musk's support of President Trump and the heading up of his DoGE agency had a significant impact on Tesla sales over much of the world. Be interesting to see how long that millstone will weigh on Tesla now that Musk appears to have severed ties with Trump.

10 minutes ago, edwinchester said:

No doubt Elon Musk's support of President Trump and the heading up of his DoGE agency had a significant impact on Tesla sales over much of the world. Be interesting to see how long that millstone will weigh on Tesla now that Musk appears to have severed ties with Trump.

Nothing to do with Musk, if he was selling his Tesla's at 500kbht a go, he'd sell as many as BYD and MG.

It's purely a pricing problem!

When did anyone ever not buy a VW because it was a company Hitler started?

7 minutes ago, BritManToo said:

Nothing to do with Musk, if he was selling his Tesla's at 500kbht a go, he'd sell as many as BYD and MG.

It's purely a pricing problem!

When did anyone ever not buy a VW because it was a company Hitler started?

https://www.reuters.com/business/autos-transportation/teslas-brand-loyalty-collapsed-after-musk-backed-trump-data-shows-2025-08-04/

This suggests that it did.

3 minutes ago, edwinchester said:

https://www.reuters.com/business/autos-transportation/teslas-brand-loyalty-collapsed-after-musk-backed-trump-data-shows-2025-08-04/

This suggests that it did.

Reuters are a lefty organisation, always have been.

It's just EU anti Trump propaganda.

3 minutes ago, BritManToo said:

Reuters are a lefty organisation, always have been.

It's just EU anti Trump propaganda.

Reuters is one of the most respected and credible news agencies in the world.

Perhaps you can show me some evidence that Elon Musk's association with Donald Trump had no effect on Tesla sales as I'm having no luck finding any.

Virtually every ride share I took in Tblisi, Baku and Tashkent were BYDs. Bolt, Yandex, Yango, etc buy fleets of them and lease them to drivers. Ive ridden in several different models and they are built like crap.

2 hours ago, edwinchester said:

Reuters is one of the most respected and credible news agencies in the world.

Perhaps you can show me some evidence that Elon Musk's association with Donald Trump had no effect on Tesla sales as I'm having no luck finding any.

Not that respected, we used Reuters and AP all the time, once we stopped sending our own reporters and camera crews overseas. Saved lots of money, destroyed the real news values of our companies.

9 minutes ago, BritManToo said:

Not that respected, we used Reuters and AP all the time, once we stopped sending our own reporters and camera crews overseas. Saved lots of money, destroyed the real news values of our companies.

How about GB News, hardly pro-EU or anti Trump?

https://www.gbnews.com/lifestyle/cars/tesla-sales-elon-musk-electric-cars

24 minutes ago, edwinchester said:

How about GB News, hardly pro-EU or anti Trump?

https://www.gbnews.com/lifestyle/cars/tesla-sales-elon-musk-electric-cars

Yes, Tesla cars are too expensive, BYD and MG are much cheaper, so sell more.

16 minutes ago, BritManToo said:

Yes, Tesla cars are too expensive, BYD and MG are much cheaper, so sell more.

Many people were prepared to pay a premium for a Tesla but now many of those refuse to do so as they disagree strongly with his political views so yes price cuts in the hope of increasing sales. Personally I think it'll be tough for Tesla to claw their way back to the top as it's not just the BYD Seal as a competitor as was a few years ago. These days there's still BYD then Xpeng, Nio, Zeekr, Aion plus Huawei and Xioami with their branded offerings.

14 hours ago, Yagoda said:

Virtually every ride share I took in Tblisi, Baku and Tashkent were BYDs. Bolt, Yandex, Yango, etc buy fleets of them and lease them to drivers. Ive ridden in several different models and they are built like crap.

You're full of it too.

In my family we currently have a BYD Dolphin and an MG4. We have previously had an MG EP+ and a BYD Seal.

The quality of Chinese EV's is up there with Porsche (I previously had a Taycan) and Mercedes (I currently have an S Class). BYD differ from others in that they make around 70% of their cars, they make the plastics, the semiconductor components in the electronics, the seats etc. Others, including Tesla, only make about 25% of their own cars.

Analyst teardowns of the BYD Seal show it is a Tesla‑class EV built at significantly lower cost, thanks to BYD’s vertical integration and Blade Battery technology. This positions BYD as a serious global competitor, capable of accelerating EV adoption worldwide.

Sources: UBS Global, Monocle UBS Q‑SeriesMonocle, Nikkei BP

https://www.ubs.com/global/en/investment-bank/insights-and-data/2023/byd-teardown.html?utm_source=copilot.com

https://monocle.com/radio/shows/the-bulletin-with-ubs/470/?utm_source=copilot.com

14 hours ago, BritManToo said:

Nothing to do with Musk, if he was selling his Tesla's at 500kbht a go, he'd sell as many as BYD and MG.

It's purely a pricing problem!

When did anyone ever not buy a VW because it was a company Hitler started?

Brand hate tends to be generational. Tesla has been particularly hit in European markets where it's perceived to be a "bad move" to buy a Tesla and owners have to put up with unpleasant comments. Males tend to accept that as part & parcel of owning a Tesla, but their wives don't. We once got a Nazi salute while driving a Rolls Royce and my wife didn't ever want to ride in it after that. Absurd considering it was a British car.

I don't think Tesla hate will change in the next 5 years or so. It would take Tesla motors to be acquired by another major car manufacturer to change that. With his stated future markets and current valuation linked to robotics and autonomous taxis, that might make a lot of sense.

BYD's are arguably a superior car and a lot cheaper. The pace of Chinese EV improvement is literally stunning. Meanwhile Tesla does minor model refreshes with no intention of bringing out new models. Most buyers of Model 3's and Y's, don't want a refreshed model, they want a new model. Tesla's strategy for model improvement has best been described by others as lipstick on a pig.

I should have thought BYD's real competition (outside China) is Toyota. Both producing high quality EVs & HEVs, BYD ahead on pricing.

90 % of people prefer Lower prices, therefore , lower price wins

1 hour ago, mfd101 said:

I should have thought BYD's real competition (outside China) is Toyota. Both producing high quality EVs & HEVs, BYD ahead on pricing.

You haven’t seen Toyota’s attempts at EV’s ?

Take a look at the b4zx and the Travo-e and come back to us.

1 hour ago, mfd101 said:

I should have thought BYD's real competition (outside China) is Toyota. Both producing high quality EVs & HEVs, BYD ahead on pricing.

Toyota is a generation or two behind on development of EV's. They have a lot of catching up to do with the Chinese and the pace of Chinese development is astounding make it very difficult for even Tesla to compete.

BYD have got the car down to 3 significant components only. The battery pack, the motor with integrated drive electronics and the dual purpose infotainment system. All under, or available with, lifetime warranty.

On 1/3/2026 at 4:54 PM, Yagoda said:

Virtually every ride share I took in Tblisi, Baku and Tashkent were BYDs. Bolt, Yandex, Yango, etc buy fleets of them and lease them to drivers. Ive ridden in several different models and they are built like crap.

Yes, we all believe in MAGA Yagoda🤣🤣🤣

Easy to see why BYD passed Tesla. Tesla's models are so old and dated looking. Plus, except for the horrible-looking truck, they all look alike--I couldn't tell one model from another if you held a gun to my head--and I'm a car buff. The tiny little change they made this year to the lights--just way too little and too late. How many years can they expect people to buy the same thing? BYD makes a wider range of models, all much fresher than anything Tesla has. And, of course, much better value for the money.

Tesla used to have a strong USP: it was the only really serious full EV brand / option, a dominant slot it held for a decade or so. That's been fast eroded by the massive onslaught of cheaper Chinese EV brands / options. Tesla will never get back that dominance.

Instead, I think Tesla will continue to shed market share, especially if it doesn't introduce some cheaper entry level models to attract new purchasers to the Tesla brand.

If the population of the USA was 1,4 billion Tesla would li,ley sell more.😀

6 minutes ago, PETERTHEEATER said:

If the population of the USA was 1,4 billion Tesla would li,ley sell more.😀

If only Tesla could sell cars in China .... Oh wait 😅

If BYD was allowed to be sold in the US,they would quickly outsell Tesla's or other electric/hypid options. But of course, Tesla couldn't handle the competition.

It is quite disgraceful to drive around a Tesla now. Not to mention the price difference with BYD that has fine cars with all the gadgets that you would never get with Tesla unless on paying hefty options. The only pity with BYD is that their cars are only electric and no regular fuel engine models sold. So no way for me.

It's common now for Tela owners to be insulted by other motorists, and good luck getting other cars to give way and let you out of that junction

1 minute ago, Sigmund said:

It is quite disgraceful to drive around a Tesla now. Not to mention the price difference with BYD that has fine cars with all the gadgets that you would never get with Tesla unless on paying hefty options. The only pity with BYD is that their cars are only electric and no regular fuel engine models sold. So no way for me.

Don't know where you are but we drive a BYD Sealion 6 plug-in hybrid in Pattaya and love it. Bought it about this time last year and I assume they are still available for sale. Around town, we never use gas. The gas engine only kicks in when we drive to our Bangkok condo. We're saving at least 4,000 baht a month in gas expenses that we had with our Honda CR-V.