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January 9, 2026, 4:34 AM EST. BYD has overtaken Tesla as the world's largest seller of electric vehicles in 2025, according to data disclosed by both companies. BYD sold 2.26 million EVs, up about 28% from 2024, while Tesla delivered 1.6 million, down 8.6% for the year-the steepest annual decline in the company's history. The shift comes even as BYD's cars remain unavailable in the United States, the market that fuels almost half of Tesla's revenue. In Q4, Tesla deliveries dropped 15.6% year over year. Analysts expect weak US EV demand to persist into late 2025. Tesla responded by cutting some prices and rolling out cheaper variants of the Model 3 and Model Y, though they travel shorter distances and omit some features. BYD faces fierce price competition in China and is expanding overseas amid tariff scrutiny.