China’s BYD set to overtake Tesla as world’s top EV seller
China’s BYD is set to overtake its American rival in annual sales for the first time, overtaking Elon Musk’s Tesla as the world’s largest electric vehicle (EV) seller.
on thursday, BYD said Sales of battery-powered cars rose almost 28% last year to more than 2.25 million, he said.
Tesla, which will announce its total sales for 2025 on Friday, published analysts’ estimates last week suggesting that it sold approximately 1.65 million vehicles in the entire year.
The US firm has faced a tough year ahead, with mixed reactions to the new proposals, unease over Musk’s political activities and intensifying competition from Chinese rivals.
In October, Tesla introduced lower-priced versions of its two best-selling models in the U.S. in a bid to boost sales. It had faced criticism that it had been slow to introduce new, more affordable options to remain competitive.
Musk, already the world’s richest man, is tasked with dramatically increasing Tesla’s sales and stock market value over the next decade to secure a record-breaking pay package. The deal, approved by shareholders in November, could see it pay out as much as $1 trillion (£740bn).
Tesla sales fell in the first three months of 2025 following backlash over Musk’s role in US President Donald Trump’s administration.
In addition to Tesla, the multi-billionaire’s business interests also include social media platform X, rocket company SpaceX and tunnel-digger Boring Company.
These commitments, along with Trump’s handling of the Department of Government Efficiency (Doge), have led some investors to argue that Musk is not focusing enough on Tesla.
Musk has since vowed to “significantly” reduce his role in the US government.
Despite BYD’s rapid growth in recent years, sales growth fell to its weakest rate in five years in 2025.
The Shenzhen-based firm is facing increasing competition in China, its main market, from the rise of electric vehicle manufacturers such as XPeng and Nio.
Still, BYD remains a global EV powerhouse as its prices undercut rival automakers.
of the company The rapid growth – particularly in Latin America, South East Asia and parts of Europe – has come despite many countries imposing high taxes on Chinese electric vehicles.
In October BYD said the UK had become its biggest market outside China. The firm said its UK sales rose 880% in the year to the end of September, driven by strong demand for the plug-in hybrid version of its Seal U sport utility vehicle (SUV).
