China’s BYD is on track to become the world’s biggest seller of electric vehicles, surpassing Tesla in annual sales for the first time as Chinese manufacturers continue to gain ground against established Western brands.
Annual Sales Figures Put BYD Ahead
On Thursday, BYD said sales of its battery-powered cars rose by nearly 28% last year to more than 2.25 million vehicles. The figure places BYD ahead of its main global rival based on available full-year data.
Tesla is scheduled to release its total sales for 2025 later on Friday. The company published analysts’ estimates last week indicating that it sold around 1.65 million vehicles over the year.
Challenges Weigh On Tesla’s Performance
Tesla has faced a difficult year marked by uneven reception to new products, concern among some investors about the political activities of its chief executive, and intensifying competition from Chinese automakers.
Manufacturers such as Geely, MG, and BYD have increased pressure on Western rivals by pricing electric vehicles below established brands. BYD has become China’s largest electric car company during this period.
In October, Tesla launched lower-priced versions of its two best-selling models in the United States in an effort to support demand.
Leadership Commitments And Strategic Targets
Tesla chief executive Elon Musk, who is also the world’s richest individual, is required to sharply increase Tesla’s sales and market valuation over the next decade under a compensation agreement approved by shareholders in November. The deal could result in a payout of up to $1 trillion if performance targets are met.
The agreement also requires Musk to oversee the sale of one million humanoid robots over the next ten years. Tesla has invested heavily in its Optimus humanoid robot program and in the development of self-driving Robotaxis.
Political Backlash And Investor Concerns
Tesla’s sales fell in the first three months of 2025 following a backlash linked to Musk’s role in the administration of US President Donald Trump. Musk has also been involved in running the Department of Government Efficiency, known as Doge.
In addition to Tesla, Musk controls several other major businesses, including X, SpaceX, and The Boring Company. Some investors have questioned whether those commitments have limited his focus on Tesla. Musk has since said he plans to significantly reduce his role in the US government.
BYD Growth Slows As Global Expansion Continues
Despite BYD’s rise, its sales growth slowed in 2025 to the weakest pace in five years, partly due to intense competition within China, its largest market. Even so, the company continues to undercut many rivals on price and remains a major force in the global EV sector.
The Shenzhen-based automaker has expanded rapidly in Latin America, Southeast Asia, and parts of Europe, even as several countries impose high tariffs on Chinese electric vehicles.
In October, BYD said the United Kingdom had become its largest market outside China. The company reported that sales in Britain rose by 880% in the year to the end of September, driven largely by demand for the plug-in hybrid version of its Seal U sport utility vehicle.
Featured image credits: Wikimedia Commons
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