China’s BYD is set to overtake Elon Musk’s Tesla as the world’s largest seller of electric vehicles, marking the first time the Chinese manufacturer has outpaced its American rival in annual sales.
On Thursday, BYD announced that sales of its battery-powered vehicles rose by nearly 28 per cent last year to more than 2.25 million units. In contrast, Tesla, which is due to release its full 2025 sales figures later on Friday, had earlier published analysts’ estimates indicating sales of around 1.65 million vehicles for the year.
Tesla has endured a challenging year, facing a mixed reception to new models, growing unease over Musk’s political activities, and intensifying competition from Chinese manufacturers. In October, the company introduced lower-priced versions of its two best-selling models in the United States in an effort to revive demand, after criticism that it had been slow to roll out more affordable options.
Musk, the world’s richest man, is under pressure to significantly boost Tesla’s sales and market value over the next decade to secure a record-breaking pay package approved by shareholders in November, which could be worth as much as $1 trillion.
Tesla’s sales fell sharply in the first quarter of 2025 following a backlash over Musk’s role in US President Donald Trump’s administration. Alongside Tesla, Musk oversees several other major ventures, including social media platform X, rocket company SpaceX and the Boring Company, while also leading Trump’s Department of Government Efficiency.
These multiple commitments prompted concerns among some investors that Musk was not devoting sufficient attention to Tesla. He has since pledged to significantly scale back his involvement in the US government.
