By the end of November 2025, BYD, based in Shenzhen, has reported sales of 2.07 million electric vehicles (EVs), setting it on track to surpass Tesla in annual sales. Tesla, led by CEO Elon Musk, had sold approximately 1.22 million EVs by the end of September, but projections suggest its total for 2025 could reach only 1.65 million due to declining sales in key markets.
Industry analysts, including Deutsche Bank, anticipate a significant drop in Tesla's sales, with estimates of just 405,000 EVs sold in the final quarter. This decline follows the expiration of a $7,500 tax credit for electric vehicle buyers, which is expected to impact demand in the U.S. market.
Despite its rapid growth, BYD faces challenges in maintaining profitability within China, where consumer price sensitivity has been an issue. The company is actively working to expand its presence in international markets to offset these challenges.