China’s BYD is approaching a decisive breakthrough. The automaker is set to overtake Tesla as the world’s largest seller of electric vehicles. The shift would mark the first annual sales lead over its American competitor.
BYD announced robust results on Thursday. Sales of battery powered cars rose by nearly 28 percent last year. Global deliveries climbed beyond 2.25 million vehicles.
Tesla will publish its full 2025 sales data later on Friday. Analyst estimates already point to a shortfall. They suggest Tesla sold roughly 1.65 million vehicles over the year.
Tesla Struggles in a Crowded Market
Tesla faced growing challenges throughout the year. Buyers reacted unevenly to newly launched models. Concern over Elon Musk’s political involvement also influenced public perception.
Competition from Chinese manufacturers continued to intensify. Carmakers such as Geely, MG and BYD expanded at speed. They gained market share through aggressive pricing.
BYD has secured its position as China’s largest electric carmaker. Its vehicles regularly undercut established international brands. That approach keeps pressure on Western rivals.
Price Adjustments and Executive Pressure
Tesla moved in October to defend its sales volumes. The company introduced cheaper versions of its two best selling US models. Management aimed to revive demand.
Elon Musk faces significant expectations at Tesla. He must deliver strong sales growth and rising market value over the next decade. These targets tie directly to his compensation package.
Shareholders approved the agreement in November. The deal could grant Musk up to one trillion dollars. It would represent the largest executive payout ever.
Robots, Politics and Investor Concerns
The compensation plan includes ambitious commitments. Musk must ensure the sale of one million humanoid robots within ten years. Tesla continues heavy investment in Optimus robots and autonomous Robotaxis.
Tesla sales fell sharply during early 2025. The decline followed backlash over Musk’s role in President Donald Trump’s administration. Political controversy weighed on the brand.
Musk also oversees several other major businesses. His interests include X, SpaceX and the Boring Company. He also led the Department of Government Efficiency, known as Doge.
Some investors questioned his focus on Tesla. They argued his obligations stretched too widely. Musk later pledged to significantly reduce his government role.
BYD Expands Overseas Despite Slower Growth
BYD’s rapid expansion slowed slightly last year. Sales growth in 2025 fell to the weakest pace in five years. Fierce competition in China limited momentum.
Still, BYD remains a dominant global electric vehicle force. Competitive pricing continues to attract buyers worldwide. That advantage supports expansion beyond China.
The Shenzhen based company continues to grow abroad. Latin America, Southeast Asia and parts of Europe drive this expansion. Many countries have imposed steep tariffs on Chinese electric cars.
In October, BYD said the UK became its largest market outside China. Sales in Britain surged by 880 percent year on year. Strong demand centered on the plug in hybrid Seal U SUV.
