BYD poised to overtake Tesla as global electric vehicle leader

Chinese manufacturer BYD is poised to overtake Elon Musk’s Tesla to become the world’s largest seller of electric vehicles (EVs).

According to reports from the BBC, BYD announced yesterday that its battery-powered car sales rose by approximately 28% last year, exceeding 2.25 million units. Tesla, which is expected to release its total sales figures later on Friday, is projected by analyst estimates to close the year with approximately 1.65 million vehicles sold.

Musk’s political moves and rising competition challenge Tesla

The US firm Tesla has concluded a challenging year marked by mixed reactions to new models, unease surrounding Elon Musk’s political activities, and intensifying pressure from Chinese rivals. Chinese brands such as Geely, MG, and BYD—now the largest EV company in the country—have placed significant pressure on Western competitors by pricing their models below those of established brands.

Tesla responded to this competition in October by launching lower-priced versions of its two best-selling models in the US to boost sales. As the world’s richest person, Musk needs to significantly increase Tesla’s sales and market value over the next decade to secure a record-breaking payment package. This agreement, approved by shareholders in November, could provide Musk with a payout of up to $1 trillion.

As part of the agreement, Musk is also required to sell 1 million humanoid robots within the next decade. Consequently, Tesla has made substantial investments in its Optimus robot and autonomous Robotaxi products. However, Tesla sales experienced a sharp decline in the first three months of 2025 due to backlash over Musk’s role in US President Donald Trump’s administration.

In addition to Tesla, Musk’s interests include massive ventures such as the social media platform X, the rocket company SpaceX, and The Boring Company. His commitment to leading the Department of Government Efficiency (Doge) under Trump led some investors to criticize Musk for failing to focus sufficiently on Tesla. In response to these reactions, Musk pledged to “significantly” reduce his role in the US government.

BYD becomes a global powerhouse

Despite BYD’s ascent in recent years, its sales growth in 2025 slowed to its lowest level in five years due to fierce competition in its home market of China. Nevertheless, the company remains a global powerhouse with models that consistently undercut the prices of its competitors.

Headquartered in Shenzhen, the company’s rapid expansion across Latin America, Southeast Asia, and parts of Europe continues, even as several countries impose heavy tariffs on Chinese-made electric vehicles. In October, BYD announced that the UK had become its largest market outside of China. The company’s UK sales surged by 880% in the year ending in late September, driven by strong demand for the SUV version of the Seal U model.