BYD Poised to Overtake Tesla as World’s Largest Electric Vehicle Seller
China’s BYD is on course to surpass Tesla as the world’s biggest seller of electric vehicles, a milestone that would mark the first time the Chinese carmaker has overtaken its US rival in annual EV sales.
BYD announced on Thursday that deliveries of its fully electric cars climbed by nearly 28% last year to more than 2.25 million units. By comparison, Tesla is expected to report global sales of about 1.65 million vehicles for 2025, based on analysts’ estimates released ahead of the company’s official figures due later on Friday.
The shift reflects a challenging year for Tesla, which has faced uneven demand for newer models, growing scrutiny of chief executive Elon Musk’s political involvement, and intensifying competition from Chinese manufacturers. Brands such as BYD, Geely and MG have continued to pressure Western carmakers by offering electric vehicles at significantly lower price points.
In response to softer demand, Tesla introduced cheaper versions of its two top-selling models in the United States in October, aiming to reinvigorate sales. However, the company’s performance was further hit in early 2025, when sales fell sharply amid public backlash linked to Musk’s role in the administration of US President Donald Trump.
Musk, who also oversees companies including SpaceX, X and the Boring Company, is under pressure to dramatically increase Tesla’s sales and valuation over the next decade. Shareholders approved a new pay package in November that could ultimately be worth up to $1tn (£740bn), contingent on ambitious targets that include major growth in vehicle sales and the rollout of technologies such as humanoid robots and autonomous “robotaxis.”
Some investors have raised concerns that Musk’s multiple business and political commitments have distracted him from Tesla, though he has since pledged to scale back his involvement in government.
While BYD’s ascent has been rapid, its growth rate slowed in 2025 to its weakest level in five years, partly due to intense competition in China. Even so, the Shenzhen-based company has cemented its position as a global EV heavyweight, helped by pricing that often undercuts rivals.
BYD’s international expansion has continued despite the introduction of higher tariffs on Chinese electric vehicles in several markets. The company has made significant inroads in Latin America, Southeast Asia and Europe, and said in October that the UK had become its largest overseas market. Sales in Britain surged by 880% in the year to the end of September, driven largely by demand for the plug-in hybrid Seal U SUV.
If confirmed by Tesla’s final figures, BYD’s sales lead would underscore the growing influence of Chinese manufacturers in shaping the future of the global electric vehicle market.
