China’s electric vehicle champion BYD is on track to overtake Tesla as the world’s biggest seller of battery-electric cars, marking a symbolic shift in the global electric vehicle race.
The Shenzhen-based group said annual sales of its battery-powered vehicles rose nearly 28 percent to more than 2.25 million units last year. By contrast, Tesla is expected to report full-year sales of around 1.65 million vehicles when it reports its 2025 numbers later on Friday, based on analyst forecasts released last week.
If confirmed, it would be the first time BYD has overtaken its American rival on an annual basis, underscoring the rapid rise of Chinese manufacturers in a market long dominated by Western brands.
The milestone caps a difficult year for Tesla, which has struggled with a lukewarm reception of newer models, increasing competition from lower-priced Chinese rivals and growing unease among some consumers and investors over the political activities of its chief executive, Elon Musk.
Chinese automakers like BYD, Geely and MG have continually eroded Tesla’s market share by offering well-equipped electric cars at significantly lower prices. In response, Tesla launched cheaper versions of its two best-selling models in the US in October to boost demand.
Sales at Tesla slumped in the first quarter of 2025 after backlash over Musk’s role in President Donald Trump’s administration, raising concerns that his focus was expanding to include too many ventures. Musk later promised to “significantly” reduce his government involvement.
Despite fierce competition in its home market that has slowed BYD’s sales growth to its weakest pace in five years, the company continues to expand aggressively abroad. It has gained traction in Latin America, Southeast Asia and parts of Europe, even as governments impose tariffs on electric vehicles made in China.
In October, BYD said Britain had become the largest market outside China, with sales rising 880 percent year-on-year through the end of September. Demand was driven in part by the plug-in hybrid version of the Seal U SUV, which found favor with British buyers looking for lower-emission vehicles without the fear of full range.
While Tesla remains one of the world’s most valuable automakers, its lead in the electric vehicle market is shrinking as rivals catch up in technology, scale and price. For BYD, overtaking Tesla would cement its status as the world’s leading electric vehicle maker – and underscore how decisively China has reshaped the global auto industry.
The question now is whether Tesla can regain momentum through new products like its humanoid robot Optimus and self-driving “robotaxi” ambitions, or whether BYD’s cost advantage and production scale will keep it at the top.
