China’s electric vehicle champion BYD is on track to dethrone Tesla as the world’s largest seller of battery-powered cars, underscoring a major shift in the global EV landscape as Chinese manufacturers tighten their grip on international markets.
The Shenzhen-based company said sales of its fully electric vehicles jumped nearly 28 percent last year to more than 2.25 million units, putting it ahead of its US rival on annual volumes for the first time.
Tesla, led by Elon Musk, is expected to report its full-year 2025 sales later on Friday. Analyst estimates released by the company last week suggest deliveries of around 1.65 million vehicles, well below BYD’s tally.
The milestone highlights a challenging year for Tesla, marked by a lukewarm response to new models, growing unease among some customers over Musk’s political positions, and intensifying competition from Chinese carmakers offering cheaper alternatives.
In October, Tesla rolled out lower-priced versions of its two best-selling models in the US to revive demand, following criticism that it had been slow to expand its affordable lineup. Despite these efforts, sales momentum has remained under pressure.
Musk, already the world’s richest individual, is under pressure to sharply accelerate Tesla’s growth over the coming years. Shareholders approved a new compensation package in November that could eventually be worth up to $1 trillion, depending on the company’s market performance.
At the same time, Musk continues to juggle multiple high-profile ventures, including social media platform X, space company SpaceX and tunnelling firm The Boring Company.
BYD’s rise has been fuelled by aggressive pricing, strong in-house battery technology and rapid overseas expansion. The company has gained significant ground in Latin America, South East Asia and Europe, even as several countries impose higher tariffs on Chinese-made EVs.
In October, BYD said the UK had become its largest market outside China. Sales in Britain surged 880 percent in the year to the end of September, driven mainly by demand for the plug-in hybrid version of its Seal U SUV.
As global EV competition intensifies, BYD’s surge signals a decisive shift in industry leadership — and a growing challenge for established Western players.