Tesla Inc has been the defining brand that put the electric car scene on the global map. Not that there weren’t electric cars before, but Tesla achieved a combination of factors that completely changed the world’s perception of electric cars in general. The early adopters played a crucial role in keeping the sales afloat, but the business took off from there, making Tesla a global juggernaut.
Fast-forwarding to January 2026, reports are now floating on the internet suggesting Tesla has been beaten by the Chinese EV brand, BYD. This way, BYD has reportedly zoomed past Tesla to become the world’s no. 1 electric car manufacturer by volume. Let’s take a closer look at the numbers and see what’s what.
BYD Zooms Past Tesla
The year 2025 has not been kind to Elon Musk and his brainchild Tesla Inc. The electric car manufacturer witnessed a major downward spiral, where global annual sales are concerned. With 1.64 million electric cars and SUVs sold, Tesla’s global annual sales dropped by around 9% YoY when compared to 2024’s numbers, which had also dropped YoY over 2023’s numbers.
BYD, on the other hand, reported a major surge in global annual sales. Around 28% YoY growth, which increased the volumes to 2.25 million units, which is around 610k units more than what Tesla managed to sell in the same period. If we dive in further, we can see that Tesla’s sales declined by around 16% in the last quarter of CY2025.
The Chinese brands have been leading the EV race where sales are concerned, and are beginning to dominate many global markets. China has surpassed Japan in terms of car exports, which is a major achievement for Chinese automotive industry. With affordable pricing and exhilarating performance, these brands are gaining popularity even in markets like Europe.
Tesla on the other hand, has been facing a major decline in sales and market share globally. Even in the domestic market, rivals like Rivian and Lucid are stepping up their game, while Tesla is losing popularity and appeal. In comparison, BYD has been steadily taking greater strides in technology and innovations.
Repealed Govt Subsidy
Elon Musk has other businesses too, like the humanoid robots, Robotaxis, SpaceX, Boring Company, Tesla Energy, X (former Twitter) and more. One of the primary reasons for Tesla’s downwards spiral in sales could be attributed to be US Government repealing a subsidy which offered USD 7,500 benefits to EV buyers.
Tesla has recently commenced operations in India, where the company has launched Model Y for a starting sticker price of Rs 59.9 lakh (Ex-sh). Tesla has received a lukewarm response to the Model Y electric crossover SUV from Indian buyers, which is brought into the country via CBU route, imported from Shanghai plant in China.
Source
Source: Electric - rushlane.com
