China’s BYD is reaching a historic milestone in the auto industry. The company is set to overtake Tesla as the world’s largest electric vehicle seller. The move would mark the first annual sales lead over the US rival.
BYD reported strong figures on Thursday. Sales of battery powered vehicles climbed nearly 28 percent last year. Total global deliveries topped 2.25 million cars.
Tesla will release its full 2025 sales numbers later on Friday. Analyst estimates already point to a clear gap. They indicate Tesla sold roughly 1.65 million vehicles during the year.
Tesla Faces Rising Challenges
Tesla experienced a difficult year across key markets. Consumers reacted unevenly to newly released models. Public concerns about Elon Musk’s political activities also affected perception.
Competition from Chinese automakers intensified throughout the year. Brands including Geely, MG and BYD expanded rapidly. They captured customers with lower priced electric vehicles.
BYD now leads China’s electric car sector. Its vehicles consistently undercut established global brands. This pricing strategy continues to pressure Western rivals.
Price Cuts and Executive Targets
Tesla acted in October to defend its sales performance. The company launched cheaper versions of its two best selling US models. Management aimed to revive slowing demand.
Elon Musk carries major expectations at Tesla. He must deliver significant growth in sales and market value over the next decade. These goals link directly to his compensation plan.
Shareholders approved the package in November. The deal could reward Musk with up to one trillion dollars. It would become the largest executive payout on record.
Robots, Politics and Investor Concerns
The compensation plan 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 commitments spread too widely. Musk later pledged to significantly reduce his government involvement.
BYD Expands Globally Despite Slower Growth
BYD’s rapid rise slowed slightly last year. Sales growth in 2025 fell to the weakest pace in five years. Fierce domestic competition limited momentum.
Still, BYD remains a global electric vehicle powerhouse. Competitive pricing continues to attract buyers worldwide. That advantage supports ongoing international expansion.
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 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.
