China’s BYD is achieving a historic breakthrough. The company is set to overtake Tesla as the world’s largest electric vehicle seller. This would mark the first annual sales lead over its American rival.
BYD released strong figures on Thursday. Sales of battery powered vehicles jumped nearly 28 percent last year. Global deliveries surpassed 2.25 million cars.
Tesla will reveal its full 2025 sales figures later on Friday. Analyst estimates already point to a significant gap. They suggest Tesla sold around 1.65 million vehicles during the year.
Tesla Confronts Rising Competition
Tesla faced a challenging year across major markets. Buyers reacted unevenly to newly launched models. Concerns over Elon Musk’s political involvement also affected public perception.
Chinese competitors intensified pressure over the same period. Companies including Geely, MG and BYD expanded aggressively. They gained market share by offering lower priced electric vehicles.
BYD now leads China’s electric car market. Its models regularly undercut established global brands. This pricing approach continues to challenge Western automakers.
Price Cuts and High-Stakes Targets
Tesla acted in October to counter slowing demand. The company launched cheaper versions of its two best selling US models. Executives aimed to restore sales momentum.
Elon Musk carries major expectations at Tesla. He must achieve strong growth in sales and market value over the next decade. These targets are directly tied to his compensation deal.
Shareholders approved the plan in November. The package could pay Musk up to one trillion dollars. It would become the largest executive payout in history.
Robots, Politics and Investor Scrutiny
The deal includes ambitious production and technology targets. Musk must oversee sales of one million humanoid robots within ten years. Tesla continues heavy investment in Optimus robots and autonomous Robotaxis.
Tesla sales fell sharply in early 2025. The decline followed backlash against Musk’s role in President Donald Trump’s administration. Political controversy affected brand confidence.
Musk also manages several other major ventures. His portfolio includes 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 commitments spread him too thin. Musk later pledged to significantly reduce his government involvement.
BYD Expands Internationally Despite Slower Growth
BYD’s rapid growth slowed slightly last year. Sales growth in 2025 dropped to the weakest pace in five years. Fierce competition in China limited momentum.
Even so, BYD remains a global electric vehicle powerhouse. Competitive pricing continues to attract buyers worldwide. That advantage supports expansion beyond China.
The Shenzhen based company is growing fast overseas. Latin America, Southeast Asia and parts of Europe drive this expansion. Growth continues despite steep tariffs on Chinese electric cars.
In October, BYD said the UK became its largest market outside China. Sales in Britain jumped by 880 percent year on year. Demand focused on the plug in hybrid Seal U SUV.
