China’s BYD is nearing a decisive industry shift. The automaker is set to pass Tesla as the world’s largest electric vehicle seller. The move would mark the first yearly sales lead over its American rival.
BYD shared strong performance figures on Thursday. Sales of battery powered vehicles increased by nearly 28 percent last year. Global deliveries rose above 2.25 million units.
Tesla plans to release its full 2025 sales data later on Friday. Analyst estimates already outline the expected result. They suggest Tesla sold around 1.65 million vehicles for the year.
Tesla Faces Growing Challenges
Tesla experienced a demanding year across key markets. Consumers reacted unevenly to recently launched models. Elon Musk’s political activities also unsettled parts of the customer base.
Chinese manufacturers increased pressure throughout the year. Brands such as Geely, MG and BYD expanded aggressively. They attracted buyers with lower priced electric vehicles.
BYD now leads China’s electric car sector. Its models consistently undercut established global brands. This pricing strategy continues to disrupt Western competitors.
Price Moves and Leadership Pressure
Tesla acted in October to counter slowing demand. The company introduced cheaper versions of its two best selling US models. Executives aimed to reignite sales momentum.
Elon Musk carries major expectations at Tesla. He must deliver strong growth in sales and market value over the next decade. These objectives link directly to his compensation deal.
Shareholders approved the agreement in November. The package could award Musk up to one trillion dollars. It would become the largest executive payout on record.
Robots, Politics and Investor Scrutiny
The deal includes demanding 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 dropped sharply in early 2025. The decline followed backlash against Musk’s role in President Donald Trump’s administration. Political controversy weighed on brand perception.
Musk also oversees several major businesses. 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 became too extensive. Musk later pledged to significantly reduce his government involvement.
BYD Expands Abroad Despite Slowing Momentum
BYD’s rapid rise slowed slightly last year. Sales growth in 2025 weakened to the lowest pace in five years. Fierce competition within China played a key role.
Still, BYD remains a global electric vehicle powerhouse. Competitive pricing continues to attract buyers worldwide. That advantage supports continued overseas expansion.
The Shenzhen based company is growing rapidly beyond China. Latin America, Southeast Asia and parts of Europe drive that 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. Demand focused on the plug in hybrid Seal U SUV.
