China’s BYD is approaching a historic turning point. The company is set to overtake Tesla as the world’s largest electric vehicle seller. This milestone would mark the first annual sales victory over the US competitor.
BYD released its latest results on Thursday. Sales of battery powered vehicles rose nearly 28 percent last year. Global deliveries climbed above 2.25 million cars.
Tesla will publish its full 2025 sales figures later on Friday. Analyst estimates already indicate a significant gap. They suggest Tesla sold about 1.65 million vehicles during the year.
Tesla Faces Rising Competition
Tesla endured a challenging year across major markets. Customers responded unevenly to recently launched models. Elon Musk’s political involvement also affected public perception.
Chinese automakers intensified pressure throughout the year. Companies such as Geely, MG and BYD expanded rapidly. They gained market share with lower priced electric vehicles.
BYD now leads China’s electric vehicle sector. Its cars regularly undercut established global brands. This strategy continues to challenge Western manufacturers.
Price Cuts and Executive Goals
Tesla acted in October to counter slowing demand. The company introduced cheaper versions of its two best selling US models. Management aimed to boost sales momentum.
Elon Musk carries high expectations at Tesla. He must drive strong growth in sales and market value over the next decade. These targets directly link to his compensation plan.
Shareholders approved the package in November. The deal could reward Musk up to one trillion dollars. It would become the largest executive payout in history.
Robots, Politics and Investor Concerns
The compensation deal includes ambitious operational 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 fell sharply in early 2025. The decline followed backlash over Musk’s role in President Donald Trump’s administration. Political controversy affected 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 spread too widely. Musk later pledged to significantly reduce his government involvement.
BYD Expands Globally Despite Slowing Growth
BYD’s rapid expansion slowed slightly last year. Sales growth in 2025 fell to the lowest pace in five years. Fierce competition in China limited momentum.
Still, BYD remains a global electric vehicle powerhouse. Competitive pricing continues to attract buyers worldwide. That advantage supports expansion beyond China.
The Shenzhen based company is growing fast overseas. Latin America, Southeast Asia and parts of Europe drive that expansion. Growth continues despite 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.
