Source: https://www.cnn.com/2026/01/02/business/tesla-byd-ev
In 2011, Tesla CEO Elon Musk dismissed Chinese electric vehicle maker BYD as a competitor. But some 14 years later, BYD beat the American EV pioneer at its own game.
The Chinese car giant has overtaken Tesla as the world’s largest seller of EVs, according to 2025 data released by the two rivals this week.
BYD announced Thursday that it had sold 2.26 million EVs, up nearly 28% from 2024. Meanwhile, Tesla reported Friday a second straight year of declining sales: Deliveries fell 8.6% to only 1.6 million, recording the biggest annual drop in the company’s history.
BYD was able to overtake Tesla even though its EVs are not available for purchase in America, while China is Tesla’s second-largest market.
In the fourth quarter, Tesla’s sales came in at about 418,000, down 15.6% from a year earlier and an even sharper decline from record global sales in the third quarter, when American motorists were rushing to buy EVs before a $7,500 tax credit expired on October 1.
Unlike other automakers, Tesla does not report its sales by market, providing only global figures, but the US market is responsible for nearly half its revenue, according to company reports. Reports by other automakers Monday are also likely to show weak US EV sales in the final three months of 2025.
Tesla’s deliveries had grown nearly 50% a year at one point. But it reported its first drop in annual sales in 2024, posting a modest 1% decline. Its sales fell sharply in the first six months of 2025 as it faced more competition from the EV offerings of other automakers, such a BYD and legacy global automakers, as well as backlash against Musk’s political activities, which angered many potential American and European buyers.
Early in the year, when Musk was leading the Trump administration’s Department of Government Efficiency, there were regular protests outside Tesla showrooms in Europe and the United States, and some reports of vandalism against Tesla cars and sites.
The rush to take advantage of the soon-to-expire tax credit helped sales in the third quarter. But it likely brought forward purchases by some buyers who might have bought Teslas later in the year.
To try to counter the loss of the tax credit, Tesla rolled out cheaper versions of its Model 3 and Model Y cars, but those versions, while costing about $5,000 less than their “premium” equivalents, also won’t travel as far on a full charge as the premium versions and lack some features.
Aggressive competition
BYD achieved the latest milestone while grappling with fierce competition and relentless price wars in its home market. The intense __ in China has prompted the Shenzhen-based company to expand further overseas, though its low-price strategy has drawn scrutiny and led to new tariffs in some markets.
Growth in BYD’s overall sales, including EVs and hybrids, slowed to its weakest pace in five years, with more than 4.6 million vehicles sold last year – underscoring the company’s struggles in China, the world’s largest automobile market and where BYD sells the bulk of its cars.
BYD also reported profit declines for both the second and third quarters of 2025.
While China’s auto market has become less crowded in the past few years, competition remains stiff with around 150 car brands and more than 50 EV makers, according to HSBC’s research. Rivals like Geely, China’s second-largest EV maker, fast-rising competitor Leapmotor and latecomer Xiaomi, which debuted its first EV only in 2024, have gradually eroded BYD’s domestic market share.
From a peak of 35% in 2023, BYD’s market share fell to 29% in the first 11 months of 2025, according to China Passenger Car Association. In the same period last year, its sales declined more than 5%, while Geely’s surged nearly 90%.
Wang Chuanfu, BYD’s founder and CEO, attributed the slowdown in domestic sales to erosion of BYD’s technological lead and insufficient product differentiation at a December investor meeting, according to state-run media. But he added that the company would soon unveil new technologies.
Shares of Tesla (TSLA) rose 1.2% in early trading Friday. Shares closed 2025 up 18.6% for the year, as investors looked past weak sales and focused on Musk’s plans for a fleet of robotaxis and an “army” of humanoid robots that he has promised to start building soon. But so far the rollout of Tesla’s robotaxi service has fallen well short of his promises, limited to two metropolitan areas, Austin, Texas, and San Francisco, rather than serving half of the US population as he had predicted it would by the year’s end
BYD +5% after becoming world’s top EV seller with 2.26M units as Tesla deliveries fall 8.6% in 2025
byu/callsonreddit inwallstreetbets
Posted by callsonreddit
17 Comments
I’d be careful of buying BYD
-34% from ATH. Downtrend. OTC markets
TSLA may be a better buy (if you had to choose between the two) simply because it’s a household name in the US. If people buy then it goes up irrespective of fundamentals
https://preview.redd.it/uvjy1tg035bg1.png?width=1220&format=png&auto=webp&s=ad3c104363f34399d4b97b0031c5504a2d4120b5
So buy TSLA at the BYD? 😅…
Tsla is a must better stock to own based on its stock performance even if makes so sense
In the age of tech, why care about commoditised car companies
Let me tell you about a robo-Optimus-ai company – Tesla
I bought Tesla and BYD at the same time a few months ago. Tesla is up while my BYD is consistently down. Not touching anymore otc stocks for a bit. Will buy more Tesla if it goes below 420.
BYD is struggling domestically just like all Chinese EV companies. They make almost no profit on local sales and a lot of their sales numbers are propped up by their distributors who are forced to buy the cars and immediately sell them on the market as “zero km” second hand cars. There’s a Chinese term called “nei juan” which is used to describe this situation where the domestic competition is so fierce that the winner ends up with a Pyrrhic victory because they have to nearly bankrupt themselves to win.
SpaceX is the biggest consumer of cyber trucks. When xAI orders 975,000 Optimus Robots the shills will be justifying the $1000 TSLA share price.
BYD was, is not and will not be a TSLA killer on stock market. Can we get over it?
I’m really curious – What if you remove sales in China?
If TSLA sales keep declining, do they ever have a cash problem?
It seems like a high share price is always a good thing, but it doesn’t do the company much good unless they start issuing shares, right? Is there a point where they run into a cash flow issue, start issuing new shares, and then shareholders run for the door?
I realize there’s a lot of “ifs” in that scenario, but the whole thing stems from one pretty reasonable catalyst (cash problem).
Would shareholders even care if TSLA started diluting?
All asian markets did very well on friday.
If berkshire exited fully awhile back, they definitely know BYD is going to have a hard time too.
1. BYD is facing alot of domestic competition.
2. Their supply chain financing (essentially interest free loans fostered on the backs of suppliers) which super charged their expansion is being reined in by the government.
3. Their main market is still China which is also reducing car subsidies starting this year.
4. Cracking down on zero-mileage 2nd hand cars.
Many headwinds for BYD.
Doesn’t matter. Another 1 trillion dollars package for Musk and TSLA +20%.
“BYD also reported profit declines for both the second and third quarters of 2025.”
“BYD achieved the latest milestone while grappling with fierce competition and relentless price wars in its home market.” “Growth in BYD’s overall sales, including EVs and hybrids, slowed to its weakest pace in five years, with more than 4.6 million vehicles sold last year – underscoring the company’s struggles in China”
“has prompted the Shenzhen-based company to expand further overseas, though its low-price strategy has drawn scrutiny and led to new tariffs”
That last bit is important as Europe is figuring out they don’t want subsidized crap dumped in their market and Trump doesn’t like that either. They may be selling cars domestically but their profitability and able to grow profits is a big question mark, especially with the market over there.
It’s such a highly speculative bet you’d have to be both fully regarded and completely out of Ritalin and Adderall. Good luck.
Imagine calling BYD trash in 2011 and now they’re eating your lunch without even selling in the US lmao
Elon really thought Chinese companies would never catch up while he was busy tweeting about dogecoin
>buying ching chong stocks in 2026.
ISHYGDDT
That’s great!
It’s down 40% since the ATH in May