Tesla's (NASDAQ:TSLA) relentless sales slump has captured headlines in recent weeks, but that doesn't reflect the reality of the global EV market.

Electric vehicle sales fell 4% in North America in 2025 due in large part to the expiration of the Federal EV tax credit. While Tesla and other automakers were hurt in the U.S., the global demand was much better.

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Global Electric Vehicle Sales Climb In 2025

Chinese EV company BYD Co (OTC:BYDDY)(OTC:BYDFF) passed Tesla for the EV crown in 2025, which may have been due in part to growing demand for the company's products. Tesla, on the other hand, saw its sales decline globally for a second straight year.

A new report from the Benchmark Mineral Institute shows that global electric vehicle sales hit 20.7 million units in 2025, up 20% year-over-year. Here are the regional breakdowns:

• China: 12.9 million vehicles, +17% year-over-year
• Europe: 4.3 million vehicles, +33% year-over-year
• North America: 1.8 million vehicles, -4% year-over-year
• Rest of World: 1.7 million vehicles, +48% year-over-year

"Globally, the EV sales figures have grown by a fifth compared to the previous year, which shows how resilient the market is," Benchmark Mineral Intelligence Data Manager Charles Lester said.

For North America, Mexico saw plug-in vehicle sales up 29%, helping to offset weakness in the U.S. and Canada. Fourth quarter EV sales were down 49% quarter-over-quarter, showing the impact of the EV tax credit expiration in the U.S.

While the U.S. faltered, other regions like Europe and China saw growth.

"Looking at Europe, the dark horse has overtaken China as the fastest growing major region."

Winners and Losers

Europe saw strong demand and had a reported 14% of sales from Chinese EV companies, with BYD leading the way.

BYD had another vehicle top the one million sales milestone and the company's large efforts in Europe appear to be paying off.

While BYD was one of the biggest winners for the EV sector in 2025, many investors and EV experts would label Tesla as a loser.

The company posted a second straight annual sales decline and for the first time in company history, saw annual sales decline.

Tesla faced multiple headwinds in 2025, including declining EV demand, the expiration of the federal EV tax credit in the U.S. and brand damage done by CEO Elon Musk's political movement and commentary.

In the U.S., Volvo, Volkswagen Group (OTC:VWAGY) and General Motors Corp (NYSE:GM) could be among the winners in 2025, according to a report from InsideEVs. The EV media outlet labels Tesla, Mercedes, Genesis and Kia as losers for the region in 2025.

What’s Next For EVs In 2026?

Benchmark Mineral Intelligence forecasts that Europe's EV growth may not be as high in 2026, but it is still a major storyline to watch. The report says that increased competition for pricing in China may have led BYD to focus more on growth in Europe and other regions to make more profit per vehicle.

A potentially bigger storyline is the falling EV demand in North America.

"For the first time in seven years in the U.S., we are predicting the market will shrink by almost a third," Lester said, with an estimate of a 29% year-over-year decline.

Several major automotive companies, including General Motors and Ford Motor Co (NYSE:F) have scaled back their electric vehicle models and plans. While this could mean fewer options for consumers in the U.S., it could also mean more opportunities for global automakers both in the U.S. and globally to capture the growing demand.

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