Tesla Overtaken by BYD in Global Electric Vehicle Sales as U.S. Deliveries Fall 8.6% in 2025
U.S. electric vehicle maker Tesla reported a decline in global vehicle deliveries for 2025, falling around 8.6 percent year on year, as it was overtaken by Chinese automaker BYD in annual electric vehicle (EV) sales for the first time.
According to company data, Tesla produced 1.655 million EVs and delivered 1.636 million in 2025, down from 1.773 million produced and 1.789 million delivered in 2024. The slowdown became more pronounced after U.S. tax credits that had incentivised electric vehicle purchases were eliminated in September 2025.
In the fourth quarter alone, Tesla produced 434,358 vehicles and delivered 418,227, a decline of roughly 16 percent compared with the same period in 2024, when production and deliveries stood at 459,445 and 495,570, respectively.
Meanwhile, BYD said on Thursday that its global EV sales reached 2.257 million in 2025, up 27.86 percent from the previous year, with an increasing share of sales coming from markets outside China, including Asia, Europe and Latin America.
Despite the slowdown, Tesla remains the largest EV manufacturer in the United States, accounting for approximately 45 percent of the domestic market. However, declining sales at the company reflect a broader slowdown in U.S. EV demand. Data from automotive research firm Cox Automotive showed that U.S. electric vehicle sales across all brands dropped by more than 40 percent year on year in November 2025.
Industry analysts predict that U.S. EV sales are likely to remain weak throughout 2026.
