China's BYD Beats Tesla as 2025's Top EV Seller: ETFs in Spotlight

The crown of the largest electric vehicle (EV) seller worldwide is officially changing hands. For years, Tesla TSLA remained the undisputed face of the green car revolution, dominating headlines and sales charts alike. However, recent data confirms a historic shift — China’s BYD Company Ltd BYDDF has overtaken Tesla as the world’s top seller of battery-electric vehicles (BEVs) on an annual basis.According to recent reports from CNBC and the BBC, BYD logged record sales of 2.26 million BEVs in 2025, reflecting a 28% increase year over year. In contrast, Tesla’s annual deliveries fell 8% to approximately 1.64 million.This historic handover doesn't just rewrite the industry leaderboard; it sharply focuses attention on investment vehicles like exchange-traded funds (ETFs) that hold significant stakes in BYD, offering a strategic path for investors to tap into this new market reality.Anatomy of the Flip: Tesla's Stumble vs. BYD's SurgeTesla’s "doom" in the 2025 rankings stemmed from a combination of an aging product lineup and intensifying political headwinds. The expiration of the $7,500 U.S. tax credit — under legislation supported by President Donald Trump — stifled domestic demand, while the company also failed to make a strong impression in international markets. Notably, its market share in France and Sweden plummeted nearly two-thirds in December alone. Conversely, BYD's “boom” is built on a formidable, vertically integrated supply chain —controlling everything from batteries to semiconductors — which allows for aggressive cost control and rapid scaling. This efficiency enabled BYD to offer a wide spectrum of vehicles, from affordable city cars to premium models, capturing a broader global market. By manufacturing its own batteries and chips, BYD achieved a cost structure that its Western rivals could barely match. Furthermore, BYD’s expansion into Brazil, Hungary, and Southeast Asia has mitigated its reliance on any single economy. Consequently, while Tesla struggled with high price points, BYD flooded the market with affordable models, helping China reach a staggering 51% EV market share in 2025.Capitalizing on the Shift Through ETFsDespite its dominance, BYD faces significant headwinds, specifically rising protectionism. With the United States and EU imposing steep tariffs on Chinese-made EVs (up to 100% in the United States), direct investment in BYD carries high geopolitical risk. This is why many prudent investors can be expected to turn to ETFs to capture the growth of the broader EV ecosystem.By utilizing these funds, investors can profit from the skyrocketing EV sales, forecasted to reach 40% of the global market by 2030, as per the International Energy Agency (IEA), without being sidelined by the specific trade barriers or price wars affecting a single manufacturer.ETFs in SpotlightTaking the above discussion into account, investors may consider the following ETFs, which carry significant weightings in BYD while also offering diversification across other leading EV companies.KraneShares MSCI China Clean Technology Index ETF KGRNThis fund, with net assets worth $59.6 million, offers exposure to 52 securities that derive at least 50% of their revenues from environmentally beneficial products and services. Of these, BYDDF holds the first position, with 8.64% weightage in the fund. KGRN has risen 22.1% over the past year. The fund charges 79 basis points (bps) as fees. iShares MSCI China ETF MCHIThis fund, with net assets worth $7.74 billion, offers exposure to 560 large and mid-sized companies in China. Of these, BYDDF holds the tenth position, with 1.59% weightage in the fund. MCHI has soared 32.3% over the past year. The fund charges 59 bps as fees. KraneShares Electric Vehicles and Future Mobility Index ETF KARSThis fund, with net assets worth $7.74 billion, offers exposure to 76 companies engaged in the production of electric vehicles and/or their components. Of these, BYDDF holds the sixth position, with 4.07% weightage in the fund. KARS has surged 43.3% over the past year. The fund charges 72 bps as fees. Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA): Free Stock Analysis Report iShares MSCI China ETF (MCHI): ETF Research Reports KraneShares MSCI China Clean Technology Index ETF (KGRN): ETF Research Reports KraneShares Electric Vehicles and Future Mobility Index ETF (KARS): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks