China’s BYD is on track to knock Elon Musk’s Tesla off the top spot as the world’s biggest seller of electric vehicles (EVs) for the first time.
The Chinese carmaker said on Thursday that sales of its fully electric vehicles jumped by nearly 28% last year, topping 2.25 million worldwide.
That puts it comfortably ahead of Tesla, which is expected to confirm annual sales of around 1.65 million vehicles when it publishes its final figures later on Friday, based on analysts’ estimates released last week.
Tesla has had a challenging year, with a lukewarm response to new models, growing competition from Chinese brands and controversy surrounding Musk’s political involvement.
Carmakers including BYD, MG and Geely have been undercutting Western rivals by offering cheaper EVs, putting pressure on established brands.
Tesla attempted to fight back in October by rolling out lower-cost versions of its two best-selling models in the US in a bid to revive demand.
Musk is under pressure to dramatically grow Tesla’s sales and share price after securing a blockbuster pay deal approved by shareholders in November.
The package could see him receive as much as $1 trillion (£740bn) over 10 years.
As part of that agreement, Tesla must also sell a million humanoid robots over the next decade, alongside pushing ahead with its Optimus robot and self-driving ‘Robotaxi’ projects.
Tesla’s sales fell sharply in the first three months of 2025 following backlash over Musk’s role in US President Donald Trump’s administration.
Some investors have questioned whether Musk’s wide-ranging commitments – which include running X, SpaceX, the Boring Company and Trump’s Department of Government Efficiency – have distracted him from Tesla.
Musk has since said he will ‘significantly’ reduce his involvement in government.
Known as ‘Biyadi’ in Chinese – or by the English slogan ‘Build Your Dreams’ – BYD was founded in 1995, originally specialising in battery manufacturing.
While its growth has slowed to its weakest pace in five years amid fierce competition in China, it remains a global EV heavyweight thanks to its low prices.
The Shenzhen-based firm and its homegrown competitors have faced hefty tarrifs in the US, but they’ve expanded rapidly across Latin America, South East Asia and Europe.
In October, BYD revealed the UK had become its largest market outside China, with sales soaring 880% in the year to the end of September, helped by strong demand for the plug-in hybrid version of its Seal U SUV.
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