China’s BYD Poised to Topple Tesla in Global EV Sales
02nd Jan. 2026
China’s electric vehicle giant BYD is on track to overtake Elon Musk’s Tesla as the world’s largest seller of electric cars. According to the experts, it will mark a significant shift in the global EV market. This would be the first time that any Chinese carmaker will surpassed its American rival in annual sales. It also highlights the intensifying competition and change in consumer preferences worldwide.
Last week, BYD has announced that the sale of its battery-powered vehicles increased by nearly 28% last year, reaching over 2.25 million units. In contrast, Tesla’s delivery outlook for 2025 was weaker than in prior years. Company-compiled consensus published figures that point to near 1.64 million vehicles deliveries in 2025, down from about 1.79 million the year before. This decline has widened the gap between the two automakers in global EV sales.
Although Tesla still remains one of the most recognizable names in electric mobility, it is now facing a challenging period. A mixed reception to its new models, concerns over Musk’s political activities, and growing pressure from lower-priced Chinese competitors have all weighed on demand.
Tesla Faces Growing Pressure as Competition Intensifies
Over the past year, Tesla has struggled to maintain momentum. In October, it introduced a cheaper versions of its two best-selling models in the US, with aim to revive their sales figures. However, critics have argued that the company was slow to roll out more affordable options that allowed its rivals to gain ground.
Meanwhile, Tesla’s sales fell sharply in the first three months of 2025 following a backlash linked to Musk’s role in US President Donald Trump’s administration. Some investors also questioned whether Musk’s wide-ranging commitments, that includes X, SpaceX, the Boring Company, and leading Trump’s Department of Government Efficiency, were distracting him from Tesla. Since then, Musk has pledged to “significantly” reduce his government involvement.
Despite these setbacks, Musk is under pressure to dramatically increase Tesla’s sales and market value over the next decade. A pay deal approved by shareholders in November could eventually be worth up to $1tn (£740bn), if ambitious targets are met.
Global Expansion of BYD despite its Slower Growth
Although BYD’s growth rate in 2025 was at its weakest in five years but, the company continues to strengthen its global footprint. While competition in China has intensified, with brands such as XPeng and Nio, BYD’s aggressive pricing strategy has helped it to stay in the market. Furthermore, the Shenzhen-based firm has expanded rapidly across Latin America, Southeast Asia, and parts of Europe.
This has happened despite many countries imposing steep tariffs on China-made EVs. In October, BYD said the UK had become its largest market outside China, with sales surging by 880% year-on-year. It has driven largely by demand for the plug-in hybrid Seal U SUV. Taken together, these trends suggest that BYD’s rise reflects not just a single year’s performance, but a broader re-balancing of power in the global electric vehicle industry.
Web Resources on the BYD’s Move to Overtake Tesla
1. BBC.com: China’s BYD set to overtake Tesla as world’s top EV seller
2. Asia.nikkei.com: China’s BYD set to surpass Tesla and become top global EV seller in 2025
3. Chinaglobalsouth.com: China’s BYD to Overtake Tesla as World’s Top EV Seller in 2025
4. Bloomberg.com: BYD hits Sales Goal.
5. Theguardian.com: Tesla publishes analyst forecasts suggesting sales set to fall.