China’s BYD is approaching a pivotal moment for the auto industry. The company is set to overtake Tesla as the world’s largest electric vehicle seller. The change would mark the first annual sales lead over its US rival.
BYD announced strong annual results on Thursday. Sales of battery powered vehicles rose by nearly 28 percent last year. Global deliveries exceeded 2.25 million cars.
Tesla will release its full 2025 sales figures later on Friday. Analyst estimates already signal a gap. They suggest Tesla sold around 1.65 million vehicles during the year.
Tesla Under Strain From Multiple Pressures
Tesla endured a challenging year across major markets. Customers responded unevenly to new vehicle launches. Public debate around Elon Musk’s political role also affected sentiment.
Chinese carmakers increased competitive pressure throughout the year. Brands including Geely, MG and BYD expanded rapidly. They gained buyers by offering lower priced electric vehicles.
BYD has secured leadership in China’s electric car market. Its vehicles regularly undercut established global brands. This pricing strategy continues to challenge Western manufacturers.
Price Cuts Reflect Rising Stakes
Tesla moved in October to defend its market position. The company launched cheaper versions of its two best selling US models. Executives aimed to revive slowing demand.
Elon Musk faces high expectations at Tesla. He must deliver sharp growth in sales and market value over the next decade. These goals directly shape his compensation agreement.
Shareholders approved the deal in November. The package could grant Musk up to one trillion dollars. It would stand as the largest executive payout ever.
Robots, Politics and Investor Doubt
The agreement includes ambitious technology commitments. 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 drop followed backlash against Musk’s role in President Donald Trump’s administration. Political controversy damaged 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 responsibilities stretched too far. Musk later pledged to significantly reduce his government involvement.
BYD Pushes Global Growth Despite Slower Pace
BYD’s rapid rise cooled slightly last year. Sales growth in 2025 slipped to the weakest level in five years. Fierce competition inside China weighed on momentum.
Even so, BYD remains a global electric vehicle heavyweight. Competitive pricing continues to attract international buyers. That advantage supports expansion beyond China.
The Shenzhen based company is expanding quickly overseas. Latin America, Southeast Asia and parts of Europe drive that growth. Expansion continues despite steep tariffs on Chinese electric vehicles.
In October, BYD said the UK became its largest market outside China. Sales in Britain jumped by 880 percent year on year. Demand surged for the plug in hybrid Seal U SUV.
