In a dramatic turn for the electric vehicle industry, 2025 has witnessed Chinese automaker BYD surpass Tesla to become the world’s leading seller of electric vehicles. BYD reported on Thursday that its sales of battery-powered cars surged by nearly 28%, reaching over 2.5 million units. Tesla is slated to release its 2025 sales numbers on Friday, but analysts suggest the U.S.-based company will have sold around 1.65 million EVs this year. In the spotlight is Wang Chuanfu, the chairman and CEO of BYD Co.

The intense competition from Chinese companies, coupled with some discontent over Tesla CEO Elon Musk’s political views and mixed reviews of new models, has added pressure on Tesla over the past year. Chinese EV brands like BYD, Geely, and MG are giving Western companies a run for their money by offering more affordable options. Dan Coatsworth, head of markets at AJ Bell, remarked to the Daily Mail, “Tesla initially led the electric vehicle charge, but its dominance has faded. Price is crucial for consumers, and BYD has seized the top spot by offering more competitive pricing than its American counterpart.”

Coatsworth continued, “Although Tesla might claim superiority in battery range and technology, many consumers are content with a more standard option as they transition to electric. Yet, BYD isn’t just about basic features; it competes well on both amenities and cost. Tesla is countering with more budget-friendly models, but CEO Elon Musk’s controversial opinions have alienated some potential buyers, regardless of price.” To counter the growing competition from Chinese automakers, Tesla introduced less expensive versions of its two most popular models in October. Besides its automotive pursuits, Musk’s ventures include the social media platform X, aerospace company SpaceX, and the tunnel-digging Boring Company.

This slew of commitments, along with running Trump’s Department of Government Efficiency (Doge), led some investors to allege Musk was not paying Tesla enough attention. Later in 2025, Musk vowed to cut back his government work. In November, Tesla shareholders approved a £740billion potential pay package for Musk. Musk won shareholder approval for the largest pay package in history, as investors endorsed his vision of morphing the EV maker into an artificial intelligence and robotics juggernaut. If Musk delivers on the ambitious milestones in the pay package laid out at the annual meeting, he could become the world’s first trillionaire. To secure the record-breaking payout, Musk has to significantly boost Tesla’s sales and stock market value over the next decade and sell a million humanoid robots over the next ten years.

BYD was founded in 1995 by Wang Chuanfu, a Chinese chemist and entrepreneur. It used to be just an electric battery manufacturer based in Shenzhen, making lithium-ion batteries for mobile phones. However, by 2003, BYD was in the position to sidestep into the automotive industry, acquiring a small car maker called Xi’an Qinchuan Automobile. It’s first combustion car, the F3, arrived in 2005, before releasing the plug-in hybrid F3DM in 2008. In 2011, Musk naively laughed off the threat of BYD.

During a Bloomberg interview, the Tesla boss scoffed: ‘Have you seen their [unnamed] car? I don’t think it’s particularly attractive, the technology is not very strong. ‘And BYD as a company has pretty severe problems in their home turf in China. I think their focus is, and rightly should be, on making sure they don’t die in China.’ However, a decade after Musk’s comments, BYD began exporting outside China.

By 2024, it reached an annual overseas sales figure of 417,204 units – representing a 71.86 per cent increase on 2023. And by 2030, BYD aims to sell half its cars outside its native land. In April, the Chinese brand officially sold more pure electric cars in Europe than Tesla for the first time on record. BYD sales rose 169 per cent compared to April 2024, versus Tesla’s dropping 49 per cent. In September 2025, Warren Buffett’s investment firm fully exited its stake in BYD after backing the ‘Tesla killer’ for 17 years.