Chinese Giant BYD Overtakes Tesla In Global EV Race

The electric vehicle (EV) landscape has seen a seismic shift, with China's BYD officially dethroning Elon Musk's Tesla as the world's leading seller of battery-powered cars. This marks the first time a rival has outpaced the American giant in annual sales, signalling a significant change in the global automotive industry. BYD announced a remarkable year, selling over 2.25 million battery-powered vehicles in 2025 – an impressive jump of almost 28%. In contrast, Tesla reported a nearly 9% drop in its worldwide car deliveries for the same year, totalling 1.64 million vehicles. This marks the second consecutive year of declining deliveries for the US firm. Tesla's struggles stem from a challenging period, including a mixed reception to new models, investor unease over Musk's various political activities, and fierce competition from a growing number of Chinese manufacturers. The final three months of 2025 saw Tesla's sales fall by 16%, partly due to the removal of a government subsidy that previously knocked thousands off the price of certain EVs. Chinese carmakers like BYD, Geely, and MG are putting immense pressure on established Western brands by offering vehicles at more competitive price points. Tesla has responded by introducing lower-priced versions of its most popular models in the US, an attempt to reignite sales momentum. Meanwhile, Elon Musk faces the monumental task of significantly boosting Tesla's sales and stock market value over the next decade. This is crucial for him to secure a record-breaking pay package, which also includes the ambitious target of selling a million humanoid robots. Tesla's future performance is heavily linked to its self-driving "Robotaxis" and "Optimus" robot rollout, slated for 2026. Despite BYD's global ascent, its sales growth did slow in 2025 – its weakest rate in five years – largely due to intense competition within its home market of China. Interestingly, while BYD now sells more cars, Tesla has remained more profitable in recent quarters, highlighting different business models. BYD's rapid expansion, particularly across Latin America, Southeast Asia, and parts of Europe, is remarkable given the steep tariffs many countries have imposed on Chinese EVs. The UK has emerged as a key market for the Shenzhen-based company, becoming its largest outside China. BYD reported an astonishing 880% surge in UK sales in the year to the end of September, driven by strong demand for models like the plug-in hybrid version of its Seal U SUV. This suggests a growing appetite among British consumers for the Chinese challenger. --- Managing your business finances? TaxAce provides smart online accountancy services for UK businesses with flexible monthly plans. Image and reporting: https://www.bbc.co.uk | Read original article