Tesla Dethroned by BYD as Global Electric Vehicle Leader

Tesla has lost its position as the top electric vehicle manufacturer to China's BYD, following reduced sales due to intensifying competition and loss of U.S. tax credits. Despite this, Tesla's CEO Elon Musk shifts focus towards future technologies like robotaxis and humanoid robots amid rising competition, especially from Europe.

Tesla has been overtaken by China's BYD as the leading electric vehicle manufacturer globally, as reported by annual sales figures. Tesla's sales dropped for the second consecutive year, influenced heavily by increasing competition, the expiration of U.S. tax credits, and a backlash against the brand.

With global electric vehicle sales up by 28% last year, BYD surpassed Tesla annually for the first time, bolstered by aggressive expansion in Europe. Meanwhile, Tesla's sales fell approximately 8.6% in 2025. CEO Elon Musk is now shifting the company's focus towards future technologies, such as robotaxis and humanoid robots, as competition intensifies in Europe.

Despite weakened vehicle deliveries, Tesla has reported a significant 11.4% increase in share prices this year. However, its position remains challenged by rival automakers like Volkswagen and BMW, pushing the company to introduce more affordable versions of their cars to maintain their market share.

(With inputs from agencies.)