BYD Poised to Surpass Tesla as World's Leading EV Seller

Fri Jan 02 2026 09:06:17 GMT+0200 (Eastern European Standard Time)

Chinese automotive giant BYD is set to overtake Tesla in electric vehicle sales for the first time, with significant growth in domestic and international markets.

BYD's annual sales surged by nearly 28%, reaching over 2.25 million battery-powered cars, while Tesla is projected to have sold around 1.65 million vehicles. Additionally, BYD's rapid expansion in markets like the UK is bolstering its position, but it faces challenges from emerging EV makers.

China's BYD is set to overtake Elon Musk's Tesla as the world's biggest seller of electric vehicles (EVs), marking the first time it has outpaced its American rival for annual sales.

On Thursday, BYD announced that sales of its battery-powered cars rose last year by almost 28% to more than 2.25 million.

Tesla, which will reveal its total sales for 2025 later today, recently released estimates indicating that it sold around 1.65 million vehicles for the year.

The US firm has had a challenging year, experiencing mixed reception to new offerings, issues regarding Musk's political activities, and heightened competition from Chinese rivals.

In an effort to boost sales, Tesla introduced lower-priced versions of its two best-selling models in October. The company faced criticism for being slow to release more affordable options.

Musk, the world's richest man, is under pressure to significantly boost Tesla's sales and stock market value to realize a record-breaking pay package approved by shareholders, which could see him receiving as much as $1 trillion (£740 billion).

Part of this agreement requires Musk to sell a million humanoid robots over the next decade. Tesla has heavily invested in its "Optimus" product and self-driving Robotaxis.

Sales at Tesla slumped early this year, particularly after backlash against Musk's involvement with the Trump administration.

Musk's responsibilities also include operating other ventures like X, SpaceX, and the Boring Company, which is leading some investors to worry about his focus on Tesla.

Despite BYD's rapid expansion, its sales growth has stagnated to the weakest level in five years, primarily due to fierce competition in China from new EV manufacturers like XPeng and Nio.

Nevertheless, BYD continues to be a global EV powerhouse as it often undercuts rival prices. Recently, it has made significant strides in markets like Latin America, Southeast Asia, and Europe, even with various countries imposing high tariffs on Chinese EVs.

As of October, BYD stated that the UK became its largest market outside of China, with a staggering 880% sales increase in the year up to September, thanks to strong demand for its plug-in hybrid model, the Seal U SUV.