China’s BYD is poised to surpass Elon Musk’s Tesla as the world’s largest seller of electric vehicles (EVs), marking the first time the Chinese automaker has outpaced its American rival in annual sales.
On Thursday, BYD reported that its battery-powered car sales rose by almost 28%, reaching over 2.25 million vehicles in 2025.
By contrast, Tesla is estimated to have sold around 1.65 million vehicles, according to analysts’ projections ahead of the company’s official 2025 sales announcement.
Tesla has faced a challenging year, including a mixed reception to new models, concerns over Elon Musk’s political involvement, and intensifying competition from Chinese manufacturers.
Companies such as BYD, Geely, and MG have pressured Western EV makers by offering competitively priced vehicles, increasing their market share globally.
In response, Tesla launched lower-priced versions of its two best-selling models in the US last October, aiming to boost sales.
Elon Musk, already the world’s richest person, is under pressure to significantly increase Tesla’s sales and stock market value to secure a record-breaking pay package potentially worth up to $1 trillion (£740 billion) over the next decade.
The deal also includes ambitious targets for Tesla, including selling a million humanoid robots and expanding its self-driving “Robotaxi” service, reflecting the company’s heavy investment in automation and futuristic technologies.
Tesla’s challenges have been compounded by Musk’s involvement in political and business ventures outside the company, including his leadership of the social media platform X, SpaceX, and the Boring Company.
Analysts have suggested that these commitments may have diverted his focus from Tesla, though Musk has pledged to reduce his external engagements significantly.
The rise of BYD highlights the growing influence of Chinese EV manufacturers on the global stage, signaling a shift in the competitive dynamics of the electric vehicle market.
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