Tesla vs BYD: Who Leads Global EV Sales in 2025

BYD passed Tesla in global electric vehicle sales in 2025. The Chinese automaker delivered about 2.26 million battery-electric vehicles and 4.6 million total new-energy vehicles including plug-in hybrids; Tesla delivered roughly 1.64 million vehicles, down nearly 10% year-over-year. BYD now holds about 20% of the global plug-in market; Tesla sits around 8% of the pure battery-electric segment. The shift reflects BYD's broader lineup, growth in Europe, and Tesla's demand headwinds from tax-credit changes, competition, and factory retooling.

Background: Two Paths to Electrification

Tesla has led pure battery-electric sales for years with the Model 3, Model Y, and higher-end models. BYD, backed by Warren Buffett's Berkshire Hathaway in the past, invested heavily in batteries and a wide range of EVs and plug-in hybrids. It sells everything from small city cars to SUVs and has expanded aggressively in Europe and other export markets. Analytics Insight and Statista both reported BYD overtaking Tesla in 2025 based on full-year delivery figures.

Key Figures for 2025

BYD's battery-electric deliveries grew roughly 27–28% year-over-year; including plug-in hybrids, it hit its 4.6 million target. Tesla's 1.64 million deliveries marked a second straight annual decline. In the European Union, Tesla sales dropped by nearly 40% in the first 11 months of 2025, while BYD's European sales more than tripled versus 2024. In the US, the rollback of federal EV tax credits for some models and political noise around Elon Musk have been cited as factors; Tesla also retooled production for the updated Model Y early in the year.

Why BYD Gained Ground

BYD offers both battery-electric and plug-in hybrid models across price points, which helps in regions where charging infrastructure is still growing. It has scaled production and kept costs down. In Europe, its lineup and pricing have won share despite tariffs and scrutiny. Tesla, by contrast, has a smaller number of models and has faced more competition from cheaper Chinese brands and from established automakers ramping EVs.

Impact on the Market

Regulators and investors watch Tesla vs BYD as a proxy for US vs China in EVs. For buyers, the race means more choice and pressure on prices. Tesla's margins and stock have come under pressure; BYD's growth has made it a default comparison in any EV discussion. Other Chinese EV makers are also growing; the leaderboard could shift again as new models and incentives evolve.

What's Next

Tesla is counting on the updated Model Y and future models (including a more affordable one) to revive growth. BYD will keep expanding in Europe and other regions. Tariffs and local content rules will shape where each can sell profitably. Watch delivery reports each quarter for the latest Tesla vs BYD standings.