Once dismissed by Elon Musk as an inferior rival, the Chinese auto giant has ended Tesla’s reign atop the electric vehicle market, signaling a historic shift in the global automotive landscape.
- A Historic Overtake: BYD surged past Tesla in 2025, delivering 2.26 million fully electric vehicles compared to Tesla’s 1.64 million, marking a decisive shift in market leadership.
- From Ridicule to Rivalry: The milestone serves as a stark counterpoint to a 2011 interview in which Elon Musk openly laughed at BYD’s products, dismissing them as non-competitive.
- Tesla’s Pivot: Despite a second consecutive year of declining vehicle deliveries, Tesla’s stock has hit record highs, driven by investor optimism surrounding its driverless technology pilot in Texas.
In a watershed moment for the electric vehicle industry, Chinese auto giant BYD has officially overtaken Tesla to become the world’s biggest seller of battery-powered cars for the calendar year 2025. The changing of the guard marks the culmination of an extraordinary rise for BYD and highlights the intensifying competition that American manufacturers now face from their counterparts in China.
Data released this week paints a picture of two companies moving in opposite directions regarding volume. In a statement published Thursday, BYD reported that sales of its battery-powered cars rose nearly 28% to reach 2.26 million units in 2025. Conversely, Tesla reported on Friday that it delivered 1.64 million vehicles, representing an 8% drop year-on-year. This marks the second straight annual drop for the U.S. automaker, with fourth-quarter deliveries falling approximately 16% compared to the same period in 2024.
The Echoes of 2011
The milestone is particularly poignant given the history between the two companies. During a Bloomberg TV interview in October 2011, Tesla CEO Elon Musk famously laughed out loud when asked about BYD as a potential competitor. At the time, Musk dismissed the company’s chances, stating, “I don’t think they have a great product.” Fourteen years later, the company he once ridiculed has not only caught up but has surged ahead in global volume, ending Tesla’s long-standing dominance in the pure EV sector.
Tesla’s Roller-Coaster Year
While BYD celebrated volume growth, 2025 proved to be a volatile year for Tesla. The company endured a “roller-coaster ride,” seeing its shares collapse in the first quarter amid stiff competition—particularly from aggressive Chinese manufacturers like BYD—and reputational fallout stemming from Musk’s incendiary political rhetoric. The operational struggles were evident in the data; while deliveries are an approximation of sales, the reported figure of 1.64 million aligned with estimates but confirmed a shrinking foothold in the hardware market.
Wall Street Looks to the Future
The narrative for Tesla is not purely one of decline. Despite the drop in physical car sales, the company’s stock price has come roaring back in recent weeks, notching an all-time closing high of $489.88 last month. Investors appear to be looking past current delivery numbers and betting on the future of autonomy. The rally was ignited after Musk revealed that Tesla had begun testing driverless vehicles in Austin, Texas, with no occupants on board—a significant progression from its pilot program with safety drivers launched six months prior.
As the dust settles on 2025, the EV market has clearly bifurcated. BYD has claimed the crown for mass-market volume, proving that the “product” Musk once laughed at is now the global standard for scale. Meanwhile, Tesla appears to be pivoting its valuation narrative from being just an auto manufacturer to an AI and robotics leader, leaving the sheer volume battle to its Chinese rival.