After overtaking Tesla 's revenue leadership in 2024, BYD is poised to surpass its American rival, led by billionaire Elon Musk, in another indicator: sales volume. If this feat is confirmed, the company will definitively assume the position of the world's largest manufacturer of electric cars .
In a statement released on Thursday, January 1st, the Chinese company reported that it closed 2025 with a total of 2.26 million electric vehicles sold, representing growth of almost 28% over sales recorded a year earlier.
The volume in question is in line with the annual target announced by BYD in September. And, most likely, it will be more than enough to leave the American automaker in the dust in this area as well.
Whether or not the company will change its top spot could happen this Friday, when Tesla is expected to release its consolidated sales results for last year. And the signs are not at all encouraging for the company to maintain its position at the top.
Projections compiled by Bloomberg indicate that the company will sell approximately 440,900 units in the fourth quarter of 2025. This volume, added to the sales accumulated up to September, would result in a total of approximately 1.66 million cars sold last year.
In addition to losing its leadership position, this level would represent Tesla's second consecutive annual decline in this segment. In 2024, the company sold 1.79 million cars, a drop of 1.1%. During that same period, BYD came closer to its rival, registering 1.76 million vehicles sold.
Tesla's likely new retreat will come after a turbulent year for the company, resulting from a combination of increased competition, expressed in the rise of BYD and other Chinese automakers.
Meanwhile, the American company also saw increased pressure on its operations as a reflection of Musk's involvement with the Trump administration and other controversies surrounding the billionaire in the political arena, as well as the end of federal subsidies for the purchase of electric cars in the US.
Despite charting a course to surpass its American competitor, BYD also faced a more complicated scenario this year. This was especially due to the impact of competition in its domestic market, which translated into an intense price war and consecutive declines in operating profits.
At the same time, the Chinese automaker faced some setbacks in its international expansion strategy, largely due to trade barriers or restrictive plans imposed on the company and its compatriots in markets other than China.
Even in this context, the company managed to register a volume of 1.05 million units sold abroad, slightly exceeding its initial estimate of 1 million cars sold in other markets.
This performance helped to partially offset BYD's performance in its domestic market. However, it impacted the company's consolidated figures, which recorded total sales of 4.6 million cars, a 7.7% increase, its slowest growth in five years.
However, some projections indicate a more favorable outlook for the company. In a note, Morgan Stanley, for example, highlights the expectation of a recovery for the company in its domestic market, after BYD launched several updates to its product line earlier this year.
On the other hand, analyst estimates compiled by Bloomberg indicate that the company could reach a total sales volume of approximately 5.3 million units this year. For Tesla, the projection is 1.8 million electric cars in the same period.
BYD shares closed Friday's trading session on the Hong Kong Stock Exchange up 3.57%, giving the automaker a market value of HK$900.3 billion (approximately US$115.6 billion).
Tesla's shares closed trading on Wednesday, the 31st, down 1%. The company is valued at US$1.49 trillion.
