Azernews.Az

by Alimat Aliyeva

In a statement released Thursday, BYD reported that sales of its battery-powered vehicles surged nearly 28% to 2.26 million units in 2025. Tesla, by contrast, delivered 1.64 million vehicles during the same period, marking an 8% decline from 2024 and its second consecutive annual drop. Tesla’s fourth-quarter deliveries fell about 16% compared with the same quarter in 2024, when the company reported 495,570 vehicles, Azernews reports, citing foreign media.

Back in October 2011, Elon Musk had openly dismissed BYD in an interview with Bloomberg TV, saying, “I don’t think they have a great product,” and adding that he did not consider BYD a competitor. Since then, BYD has undergone a meteoric rise, culminating in what analysts are calling a historic shift in the global electric vehicle market.

Tesla faced a turbulent 2025, with shares plummeting in the first quarter amid stiff competition, particularly from Chinese EV manufacturers, and reputational challenges linked to Musk’s political statements, according to ABC News. Analysts had expected Tesla’s fourth-quarter deliveries to slow only slightly, predicting around 449,000 vehicles. However, the phase-out of the $7,500 U.S. EV tax credit at the end of September 2025 contributed to the slowdown. Political factors also weighed on Tesla, with sales struggling in key markets following Musk’s public support for former President Donald Trump and other far-right figures.

BYD, known in Chinese as “Biyadi” — which translates to “Build Your Dreams” — was founded in 1995 as a battery manufacturer. Since then, it has grown into a leading player in China’s highly competitive new energy vehicle market, producing both fully electric and plug-in hybrid vehicles. With China being the world’s largest EV market, BYD leveraged its affordable, high-volume models to capture significant market share.

Despite facing hefty U.S. tariffs, BYD is expanding overseas, gaining traction in Southeast Asia, the Middle East, and Europe. In 2025, the company exported over 1 million vehicles, a 150% increase from the previous year. December alone saw a record 133,000 units shipped abroad, with production soon set to begin in new plants in Brazil and Hungary — moves designed to bypass trade barriers and strengthen its global presence.

The 2025 leadership shift highlights two contrasting trajectories. Tesla’s deliveries fell due to aging models, political challenges, and the EV tax credit phase-out, while BYD surged nearly 30% by targeting entry-level, high-volume segments Tesla has yet to penetrate. Analysts note that BYD’s vertical integration — producing its own batteries and semiconductors — gives it a scale advantage, protecting margins as competitors struggle.

Despite record sales, BYD may face challenges in 2026 due to a shift in Chinese policy. Fixed rebates have been replaced with a percentage-based system, requiring vehicles to cost at least 166,700 yuan to receive the maximum 20,000 yuan subsidy. A new 5% purchase tax could further impact demand for budget models like the Seagull, though analysts believe BYD’s premium sub-brands are well-positioned to attract consumers moving upmarket.

In 2024, Tesla narrowly beat BYD, selling 1.79 million units versus BYD’s 1.76 million. But 2025 marks the first time BYD has outproduced the American EV giant.

Tesla shares dipped 0.5% in early New York trading on Friday, but analysts at Los Angeles-based Wedbush Securities noted that Tesla’s quarterly sales still exceeded some expectations, even as challenges in Europe and other key markets persist.

With its affordable models, efficient manufacturing, and expanding international footprint, BYD is now poised to reshape the global EV landscape — signaling a historic shift in the balance of power between Chinese and American automakers. Some analysts even predict that BYD could become the world’s largest EV maker within the next few years, further intensifying competition in the global market.