Tesla has regained its position as the world's top-selling electric vehicle maker in the first quarter of 2026, edging past China's BYD. The American company sold 358,023 EVs globally from January through March, compared to 310,389 units of BYD - a gap of over 47,000 cars.
Tesla's 2026 Q1 sales mark a 6.3 percent increase over the same period last year, while BYD saw an over 25 percent decline. The entry-level duo of Model 3 and Model Y made up 95 percent of the total sales. The sales growth, though modest, helped Tesla move back ahead of BYD, which had overtaken it in total annual sales in 2025.
- Tesla sold over 47,000 cars more than BYD in Q1 2025
- BYD sold over 2.2 million units in 2025, outselling Tesla by 620,585 vehicles in the same year
- Tesla’s upcoming lineup includes the Cybercab robotaxi and a new-generation Roadster
In 2025, BYD took the lead with 2,256,714 cars sold, significantly ahead of Tesla's 1,636,129 units. This shift came as BYD's sales grew by nearly 28 percent year-on-year, while Tesla's volumes declined by about 9 percent. For context, in 2024, Tesla had narrowly stayed ahead, delivering 1,789,226 cars, just above BYD’s 1,764,992 units.
EV subsidies cut in China
As per a South China Morning Post report, a big part of this pressure comes from policy changes in China. New EV trade-in subsidies that came into effect on January 1 now cap support at 20,000 yuan (Rs 2.7 lakh), whereas buyers previously got that amount regardless of the car's price. At the same time, the country has started phasing out its EV sales tax break, cutting the exemption from 10 percent to 5 percent.
Tesla recently pulled the plug on the Model S and Model X, two of its longest-running EVs, and it is preparing to debut two new models: the two-seat Cybercab and the second-generation Roadster. Exact timelines remain unclear right now.
Converted figures are as of April 6 (3:19pm).
Suraj Viswanathan
Dhruv Dhaka
Viraaj Bhatnagar
Glenn Noronha
