BYD vs Tesla: Global EV Race Heats Up as BYD Challenges Tesla’s Market Lead

International

oi-Gaurav Sharma

BYD
vs
Tesla:
China’s
electric
vehicle
giant
BYD
is
closing
in
on
overtaking
Elon
Musk’s
Tesla
as
the
world’s
largest
seller
of
electric
cars,
as
its
rapid
growth
contrasts
with
slowing
momentum
at
the
US
automaker.

BYD
said
sales
of
its
fully
electric
vehicles
jumped
nearly
28%
last
year,
crossing
2.25
million
units.
In
comparison,
analyst
estimates
released
by
Tesla
last
week
suggest
the
company
sold
about
1.65
million
vehicles
in
2025,
with
official
figures
due
later.

The
figures
underline
the
growing
pressure
Chinese
automakers
are
placing
on
Western
rivals.
Companies
such
as
BYD,
Geely
and
MG
have
gained
market
share
by
offering
lower-priced
models,
forcing
established
brands
to
respond
with
discounts
and
revised
pricing
strategies.

Tesla
moved
to
cut
prices
in
October,
rolling
out
cheaper
versions
of
its
two
top-selling
models
in
the
United
States
after
a
challenging
year
for
demand.
However,
reception
to
recent
updates
has
been
mixed,
while
Elon
Musk’s
political
involvement
and
intensifying
competition
from
Chinese
firms
have
unsettled
some
investors.

Although
BYD’s
growth
remains
strong,
the
company
has
also
faced
challenges.
Sales
expansion
in
2025
slowed
to
its
weakest
pace
in
five
years
amid
fierce
competition
in
China,
its
largest
market.
Despite
thinner
margins,
aggressive
pricing
has
helped
the
firm
undercut
rivals
globally.

The
Shenzhen-based
automaker
is
expanding
rapidly
overseas,
particularly
in
Latin
America,
Southeast
Asia
and
Europe,
even
as
several
countries
impose
higher
tariffs
on
Chinese
electric
vehicles.
In
October,
BYD
said
the
UK
had
become
its
biggest
market
outside
China,
marking
a
key
milestone
in
its
international
push.

Sales
in
Britain
surged
880%
in
the
year
to
the
end
of
September,
driven
largely
by
demand
for
the
plug-in
hybrid
Seal
U
SUV.
The
model
has
helped
BYD
gain
visibility
among
European
buyers
increasingly
shifting
toward
electric
and
hybrid
vehicles.

Tesla,
meanwhile,
has
struggled
with
declining
sales
in
early
2025,
following
criticism
of
Musk’s
role
in
US
President
Donald
Trump’s
administration.
Investors
have
raised
concerns
that
Musk’s
attention
is
divided
between
Tesla
and
his
other
ventures,
including
SpaceX,
X
and
the
Boring
Company,
as
well
as
his
leadership
of
the
Department
of
Government
Efficiency.

Musk
has
since
said
he
plans
to
scale
back
his
political
involvement
and
refocus
on
Tesla.
At
the
same
time,
the
company
is
investing
heavily
in
long-term
projects
such
as
humanoid
robots
and
autonomous
robotaxis,
expanding
its
ambitions
beyond
electric
vehicles.

Musk’s
compensation
package,
approved
by
shareholders
in
November,
links
his
pay
to
Tesla’s
long-term
growth
and
could
be
worth
up
to
$1
trillion
if
ambitious
targets
are
met.
These
include
major
increases
in
sales,
market
value
and
the
rollout
of
a
million
humanoid
robots
over
the
next
decade.

As
BYD
accelerates
its
global
expansion
and
Tesla
balances
political,
technological
and
strategic
pressures,
the
rivalry
between
the
world’s
two
largest
electric
vehicle
makers
is
entering
a
decisive
new
phase.