Chinese electric vehicle company BYD, which is heavily subsidized by the Chinese government, became the world’s top electric vehicle maker in 2025, dethroning Tesla.
Last year, BYD saw a 28% in sales by selling 2.26 million vehicles. Notably, BYD did not make any sales to American consumers.
Meanwhile, Tesla, which was riddled with controversy due to CEO Elon Musk’s involvement in the Trump administration, sold 1.64 million vehicles last year, marking a 9% drop in sales from the year prior. 2025 marked the second year in a row that Musk’s company experienced a slump in yearly sales.
With Musk taking on the role of leading the Department of Government Efficiency at the beginning of Trump’s second term, he was met with widespread criticism by government employees and liberals alike for his cavalier approach in administrating widespread firings and audits of the federal government.
Protests at Tesla showrooms and dealerships erupted across the country to pushback against Musk. Many of these “Tesla Takedown” campaigns turned violent with showrooms vandalized and vehicles set on fire.
By the end of Tesla’s first quarter, Tesla saw a 71% drop in earnings. Shortly after, Musk announced he would be ending his role with the Trump administration. However, his announcement also corresponded with the end of his 130 day legal limit as a special government employee.
Tesla has also had to navigate the Trump administration’s decision to not extend a $7,500 federal EV tax credit in the One Big Beautiful Bill Act. The EV tax credit expired in September.
Despite a rocky year, Tesla shareholders agreed in November to grant Musk a large new pay package, which will put him on track to become the world’s first trillionaire if he meets several key targets for the company.
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