BYD dethrones Tesla!

The Chinese automotive giant BYD has officially become the world’s leading manufacturer of electric vehicles.

For the first time in the history of electric vehicles, a manufacturer other than Tesla has claimed the title of global leader in electric vehicle (EV) sales. In 2025, BYD (Build Your Dreams), a Chinese group founded in 1995 in Shenzhen, surpassed Elon Musk’s company both in volume and in its growing influence on the global zero-emission car market.

According to the latest figures, BYD sold approximately 2.25 to 2.26 million electric cars worldwide in 2025, recording a growth of nearly 28% compared to the previous year. In contrast, Tesla experienced a drop in its deliveries, falling to 1.63 million units, which is nearly 9% less than its sales in 2024. These figures mark the first year where Tesla no longer sits at the top of the electric vehicle market, giving way to BYD.

The Winning Strategy of BYD

This transfer of power reflects several underlying developments. On one hand, BYD benefits from a remarkable vertical integration strategy, controlling a significant portion of its production chain – including its own so-called Blade batteries – which allows it to reduce costs and offer more affordable models. Its strong presence in the Chinese market, the largest in the world for electric cars, provides it with a significant advantage.

On the other hand, Tesla faces headwinds: the expiration of tax incentives in the United States, increased competition in Europe and China, and growth towards still-emerging segments like robotaxis, which do not compensate for the decline in passenger car sales.

This reversal also illustrates a geopolitical restructuring of the automotive sector. Tesla’s dominance, long considered unshakeable, is now being challenged by the rise of Chinese manufacturers capable of competing on technology, volume, and cost.

In an expanding electric market, this change in leadership could well reshape the rules of the game for the next decade, pushing established players to innovate faster, optimize their production chains, and meet an increasingly demanding global market.

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