China's BYD has overtaken Elon Musk’s Tesla as one of the world’s biggest sellers of electric vehicles(EVs), outperforming its American rival for the first time in 2025.

BYD has confirmed its sales of its battery-powered cars surged by nearly 28%, reaching over 2.25 million units last year.

The total sales figures for Tesla were yet to be disclosed for 2025 on Friday; however, analyst estimates from last week suggest the company sold around 1.65 million vehicles for the full year.

US firms have faced a challenging year characterized by mixed market feedback and intensifying competition from Chinese rivals.

Tesla introduced economical versions of its best selling models in the US to enhance sales in October. However, it faced criticism for being slow to release cost-effective alternatives to stay competitive.

Musk, being the world’s richest man, is efficiently working to significantly boost Tesla’s sales and stock market value to secure an unprecedented pay package.

Tesla sales collapsed in the first three months of 2025 after facing criticism against Musk’s role in President Donald Trump’s administration.

Apart from Tesla, the multi-billionaire’s business interests also include the social platform X, the rocket firm SpaceX and the Boring Company, which excavates tunnels.

As reported by the BBC, BYD’s has seen explosive growth in recent years, its sales growth slowed in 2025 due to the lowest rate in five years.

The Shenzhen-based firm is encountering rising competition in China, from a surge of EV makers like XPeng and Nio.

Despite all the odds, BYD remains a global EV powerhouse as its charge significantly less than rival carmakers.

The company’s boom- especially in Latin America, South East Asia and parts of Europe- comes despite many countries imposing sleep tariffs on Chinese EVs.

BYD has confirmed that the UK has become its biggest market outside China. The firm clarified that its sales in Britain increased by 880% in the year to the end of September, propelled by strong demand for the plug-in hybrid version of its Seal U sports utility vehicle (SUV).

The recent shift marks a significant turning point in the automotive power structure, as the industry has reached a consensus regarding the BYD-Tesla rivalry.