Chinese rival BYD became the biggest global seller of battery-powered vehicles last year, according to figures released on Friday.

Tesla annual sales have fallen for the second year in a row, a drop fueled by the removal of the federal tax credit in the U.S. and competition from Chinese automakers.

Full-year electric vehicle sales figures have dropped for 2025, revealing China’s BYD is now officially global top dog.

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Tesla Inc. ended last year on a roll, with investors increasingly buying into Elon Musk’s ebullience about autonomous vehicles. Winning over actual car buyers was another story.

Discover four electric vehicles that beat Tesla in range, charging speed, space and performance. See which EV models one expert says are smarter buys.

Tesla’s 2025 vehicle deliveries fall 8.6% as global EV competition rises and Model 3 and Model Y dominate fourth-quarter sales.

Tesla’s sales fell in the fourth quarter of 2025, as rising competition and the expiration of the federal EV tax credit continued to sap the company’s global ambitions. The sales drop has led to Tesla losing its title as the world’s best-selling EV maker to China’s BYD, which sold 2.26 million vehicles last year.