BYD Surpasses Tesla in Annual EV Deliveries Amid Softening in Sales

Tesla has been overtaken as the world’s biggest electric vehicle maker after global deliveries declined for the 2nd consecutive year, marking a major shift in leadership within the rapidly expanding EV market, as per news reports. 

Global Sales Shift and Annual Performance 

Tesla said it delivered 1.64 million vehicles worldwide in 2025, a 9% decline from the previous year. The slowdown allowed BYD to move into the top position after reporting sales of 2.26 million vehicles during the year.  

The change reflects intensifying competition from Chinese manufacturers and growing pressure on Tesla across key international markets. 

Quarterly Trends and Pricing Strategy 

Tesla’s 4th-quarter sales stood at 418,227 vehicles, below the 440,000 units expected by analysts tracked by FactSet. Demand during the quarter was affected by the expiry of a $7,500 US tax credit for EV buyers at the end of September.  

The period also marked the first sales of newly introduced lower-priced versions of the Model Y and Model 3, announced in early October. The updated Model Y is priced just under $40,000, while the Model 3 starts below $37,000, a move aimed at improving competitiveness in Europe and Asia. 

Investor View and Forward Expectations 

Despite the sales decline, Tesla shares rose 0.5% to $451.60 in early Friday trading and ended 2025 up about 11%. As per news reports the key focus is on the longer-term strategy outlined by CEO Elon Musk, who has repeatedly said that future growth will increasingly come from areas such as autonomous robotaxi services, energy storage and humanoid robotics. 

Read More: BYD Hikes Sealion 7 Premium Price by ₹50,000 From January 2026! 

Conclusion 

Tesla’s loss of the global EV sales lead to BYD underscores a turning point in the electric vehicle market, as rising competition and policy shifts reshape industry dynamics heading into 2026. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.