Chinese automaker BYD has become the world’s leading seller of electric vehicles, overtaking U.S. rival Tesla, whose deliveries declined for the second consecutive year.

Tesla said it delivered 1.64 million vehicles in 2025, down 9 percent year on year. Over the same period, BYD sold 2.26 million vehicles, posting annual growth of 27.9 percent.

Founded in 1995 as a battery manufacturer before expanding into the automotive sector, BYD now dominates China’s market for new energy vehicles. At the same time, the group is accelerating its international expansion, with one million vehicles sold outside China in 2025, up 150 percent from a year earlier. It aims to export up to 1.6 million units in 2026.

While facing high tariff barriers in the United States, BYD is enjoying strong momentum in Southeast Asia, the Middle East and Europe.

In 2024, the gap between the two manufacturers was narrow, with Tesla selling 1.79 million vehicles compared with 1.76 million for BYD.

Despite the drop in sales, Tesla shares gained about 11 percent in 2025, buoyed by investor optimism surrounding the group’s robotaxi and humanoid robot projects.