China’s BYD is set to surpass Tesla as the world’s largest seller of electric vehicles based on annual sales.
BYD said sales of its battery-powered vehicles rose nearly 28% last year to more than 2.25 million units.
Tesla is expected to report around 1.65 million vehicle sales for 2025, according to analyst estimates.
The shift would mark the first time BYD has outpaced its US rival in yearly EV sales.
Tesla faced a challenging year amid mixed reactions to new models and growing competition from Chinese manufacturers.
The company introduced lower-priced versions of its best-selling models in October to revive demand in the United States.
Tesla sales weakened early in 2025 following criticism of Elon Musk’s political involvement.
Some investors questioned Musk’s focus on Tesla due to his wider business and government commitments.
Musk has since said he would significantly reduce his role in US government activities.
BYD’s sales growth slowed in 2025 to its weakest pace in five years amid rising domestic competition.
Chinese rivals such as XPeng and Nio have intensified pressure in BYD’s home market.
Despite this, BYD continues to gain global market share through competitively priced vehicles.
The company has expanded rapidly across Latin America, South East Asia and Europe.
BYD said the UK became its largest overseas market in October after an 880% surge in sales.