Tesla Inc. (NASDAQ:TSLA) has lost its position as the world’s top electric vehicle (EV) maker to China’s BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF), after reporting a second year of declining vehicle sales.
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Tesla reported a 9% drop in fully electric vehicle deliveries in 2025, falling to 1.64 million units from 1.79 million in 2024. The decline was driven by intensifying competition, especially from Chinese automakers, and the expiration of U.S. federal EV tax credits that had previously supported demand.
In contrast, BYD surged ahead with a 28% increase in pure EV sales, delivering 2.26 million vehicles in 2025. The Chinese automaker’s growth was fueled by aggressive international expansion, particularly in Europe and other overseas markets, where demand for affordable EVs continues to rise.
While Tesla enjoyed uninterrupted annual sales growth from 2011 through 2023, the latest figures confirm a second straight year of contraction. The EV giant has faced mounting pressure from multiple fronts, including reduced government incentives, heightened competition, and reputational challenges tied to CEO Elon Musk‘s political activity and public controversies.
See Also: If You Invested $5000 In Tesla Around Christmas 2020, Here’s How Much It Would Be Worth Today
Tesla Recovery Falls Short
Tesla has attempted to reignite demand through a refreshed Model Y and a lower-priced variant, but these efforts have fallen short amid a flood of competitively priced EVs from Chinese and Western rivals.
Meanwhile, Chinese automakers have rapidly expanded their footprint in Europe, capturing a record share of the region’s EV market in late 2025. Companies such as BYD, Stellantis NV-backed (NYSE:STLA) Leapmotor, and Chery Automobile have led this push, further eroding Tesla’s dominance.
Despite Tesla’s strong focus on autonomous driving, artificial intelligence, and robotics, its main automotive business is still losing momentum. Regulatory challenges have made the situation more difficult, especially in Europe, where Tesla has had trouble gaining approval for its full self-driving (FSD) tech.
The latest data underscores a pivotal moment in the EV industry: Tesla’s long-held leadership position has given way to BYD, reflecting the growing influence of Chinese automakers in shaping the future of the global electric vehicle market.
What’s Up With The Stocks?
Tesla vs BYD Stock Comparison:
MetricTeslaBYDMarket Capitalization$1.37 trillion846.36 billion52-Week High$498.82¥116.59 ($16.65)52-Week Low$214.25¥48.56 ($6.93)1-Year Stock Gain15.50%8.29%
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
