Chinese company seeks to expand its presence abroad as increasingly price-sensitive consumption patterns in China are affecting its profitability
This Friday (2), the company reported lower-than-expected sales in the fourth quarter of 2025, ceding its position as the world’s largest electric vehicle company in annual sales to the Chinese automotive giant .
The American company, owned by the tycoon, recorded 418,227 deliveries in the last three months of the year, bringing its total annual sales to around 1.64 million electric vehicles. On Thursday (1), BYD reported having sold 2.26 million electric vehicles in 2025.
According to the FactSet consensus, analysts predicted that Tesla’s sales in the last quarter would slow down less, to around 449 thousand units. Industry experts have indicated that demand for electric vehicles will take time to stabilize in the United States after the elimination of the $7,500 tax credit at the end of September 2025.
Before this measure, Tesla was already facing sales difficulties in key markets due to Musk’s support for President Donald Trump and other far-right politicians. Tesla also faces growing competition from BYD and other Chinese companies, as well as European giants.
On Thursday, Shenzhen-based BYD, which also makes hybrid cars, announced record sales of electric vehicles last year.
Known as “Biyadi” in Chinese, or by its English slogan “Build Your Dreams,” BYD was founded in 1995 and originally specialized in battery manufacturing. The sector giant has come to dominate the highly competitive Chinese market for “new energy vehicles”, a term that covers several models, from fully electric to plug-in hybrids. China is the largest market for this type of vehicle.
BYD is looking to expand its presence abroad as increasingly price-sensitive consumption patterns in China are affecting its profitability. Despite high American tariffs, also faced by other Chinese manufacturers, the company is growing in Southeast Asia, the Middle East and Europe. By 2024, Tesla had surpassed BYD in electric vehicle sales by a narrow margin: 1.79 million versus 1.76 million.
*With information from AFP
