Tesla slips to second place in global EV market after 2025 sales dip

It was the first time the Tesla company has been overtaken in annual electric vehicle sales by China's automaker BYD.

The impact on sales became most pronounced after tax credits that had encouraged U.S. consumers to purchase electric vehicles were eliminated in September 2025. BYD said Thursday that its global electric vehicle sales reached 2.257 million in 2025, up 27.86 percent from a year earlier. Although Tesla remains the largest EV manufacturer in US, its declining sales suggest a broader slowdown in the U.S. EV market.