A seismic shift in the electric vehicle market in 2025 has seen Chinese firm BYD outmuscle Tesla as the world’s largest seller of EV vehicles.
In the annual sales stakes, BYD said on Thursday that sales of its battery-powered vehicles jumped nearly 28 per cent to more than 2.5million.
Tesla is due to post its 2025 annual sales figures later on Friday. Last week, analyst estimates claimed the US-based business is likely to have sold approximately 1.65million EV cars in 2025.
Ferocious competition from Chinese rivals, a degree of unease among some of Tesla chief Elon Musk’s politics and mixed reviews of new models piled pressure on the American giant last year.
Chinese EV makers like BYD, Geely and MG are snapping at the heels of Western rivals and luring in customers with lower prices.
Under pressure: The billionaire boss of Tesla, Elon Musk, is under pressure to deliver
Dan Coatsworth, head of markets at AJ Bell, told the Daily Mail: ‘Tesla had the first mover advantage with electric vehicles, but its moment in the sun has long gone.
‘Price is incredibly important to drivers and BYD has muscled its way to the top by undercutting its American rival.’
He added: ‘While Tesla might argue it has the edge on battery range and technology, many people are happy for a more standard offering as they embrace electric power.
‘BYD is far from a no-frills offering though, as it competes well on features as well as price.
‘Tesla is fighting back with more affordable vehicles, but the outspoken nature and political views of CEO Elon Musk means the brand is off limits to many drivers, no matter the price point.’
In a bid to fend off Chinese rivals, Tesla launched lower-priced versions of its two best-selling models in October.
Aside from Tesla, Musk’s business interests also include social media platform X, rocket firm SpaceX and the Boring Company, which digs tunnels.
This slew of commitments, along with running Trump’s Department of Government Efficiency (Doge), led some investors to allege Musk was not paying Tesla enough attention.
Later in 2025, Musk vowed to cut back his government work.
In November, Tesla shareholders approved a £740billion potential pay package for Musk.
Musk won shareholder approval for the largest pay package in history, as investors endorsed his vision of morphing the EV maker into an artificial intelligence and robotics juggernaut.
At the top: Wang Chuanfu is the chairman and chief executive of BYD
Words matter: In 2011, Musk naively laughed off the threat of BYD
If Musk delivers on the ambitious milestones in the pay package laid out at the annual meeting, he could become the world’s first trillionaire.
To secure the record-breaking payout, Musk has to significantly boost Tesla’s sales and stock market value over the next decade and sell a million humanoid robots over the next ten years.
BYD was once the butt of jokes…but not any more
BYD was founded in 1995 by Wang Chuanfu, a Chinese chemist and entrepreneur.
It used to be just an electric battery manufacturer based in Shenzhen, making lithium-ion batteries for mobile phones.
However, by 2003, BYD was in the position to sidestep into the automotive industry, acquiring a small car maker called Xi’an Qinchuan Automobile.
It’s first combustion car, the F3, arrived in 2005, before releasing the plug-in hybrid F3DM in 2008.
In 2011, Musk naively laughed off the threat of BYD.
During a Bloomberg interview, the Tesla boss scoffed: ‘Have you seen their [unnamed] car? I don’t think it’s particularly attractive, the technology is not very strong.
‘And BYD as a company has pretty severe problems in their home turf in China. I think their focus is, and rightly should be, on making sure they don’t die in China.’
However, a decade after Musk’s comments, BYD began exporting outside China.
By 2024, it reached an annual overseas sales figure of 417,204 units – representing a 71.86 per cent increase on 2023. And by 2030, BYD aims to sell half its cars outside its native land.
In April, the Chinese brand officially sold more pure electric cars in Europe than Tesla for the first time on record.
BYD sales rose 169 per cent compared to April 2024, versus Tesla’s dropping 49 per cent.
In September 2025, Warren Buffett’s investment firm fully exited its stake in BYD after backing the ‘Tesla killer’ for 17 years.
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