A new leader in the electric vehicle market has emerged at the beginning of 2026, with BYD ahead of Tesla to become the world’s largest electric vehicle manufacturer.
What is happening?
according to The GuardianBYD becomes the world’s largest electric vehicle company thanks to rising sales in 2025.
The Chinese company sold 2.26 million battery-powered electric cars globally during the year, while Tesla sold 1.63 million. In 2025, Tesla sales fell by 9% compared to the previous 12 months.
Tesla’s faltering sales numbers may be attributed to Eliminate the federal electric vehicle tax creditFor every guard. Some analysts also said sales fell after Tesla CEO Elon Musk became involved in politics in the United States.
Meanwhile, BYD’s electric vehicle sales jumped 28% in 2025. The Guardian reported that the automaker Produced more cars From Tesla in general, including hybrid cars.
Why is the decline in electric car sales a concern?
Electric vehicle sales accounted for about 12% of the US market in the third quarter of 2025 – A New sales recordDepending on the location of the car and driver. However, these numbers coincided with the end of the federal tax credit.
According to InsideEVs, 230,000 electric vehicles were sold in the US last quarter, which is a huge number. 46% decrease From the previous quarter. Additionally, total U.S. electric vehicle sales are expected to reach 1.275 million in 2025. This number is lower than in 2024, making it the first year-over-year decline in six years.
Declining electric vehicle sales may impact the environment in the future. Produces vehicles Zero tailpipe emissionsunlike their gas counterparts. More electric vehicles on the road means less global-warming pollution in the atmosphere, as well as fewer particulate matter that increases the risk of respiratory and cardiovascular disease.
What can Tesla do to improve sales?
Make your next car an EV It can save you hundreds of dollars on gas and maintenance. Although the US federal tax credit has expired, many states are offering incentives for electric vehicles. However, some states operate on a first-come, first-served basis due to limited funds.
As for Tesla, the electric car maker introduced cheaper versions of the Model 3 and Model Y late last year to boost sales.
According to Business Insider, other automakers are expected to offer it More affordable electric vehicles In 2026 amid slowing sales.
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