The electric vehicle (EV) industry has a new global leader, with Chinese company BYD surpassing American firm Tesla in sales. BYD sold a record 1,023,381 vehicles in the first and second quarters of 2025, compared to only 862,615 vehicles from Tesla.
BYD’s success is attributed to its rapid expansion strategy, offering models at affordable prices and aggressively entering global markets. In contrast, Tesla faces declining sales and intensifying competition.
Once a symbol of innovation in the EV sector, Tesla is having to reposition itself amid changing market dynamics, the rise of ambitious competitors, a decline in Elon Musk’s popularity owing to his association with President Donald Trump’s presidency, and the latter’s so-called Big, Beautiful Bill, signed on 4 July, that ends federal EV tax credits from October.
