The race in electric vehicles (EVs) seems to be favoring BYD, a leading Chinese manufacturer. Tesla, once the frontrunner, has seen a dip in its sales, while BYD reported a nearly 28% sales increase year-to-date in December.
In the last few months, Tesla delivered around 480,000 cars in the third quarter and about 400,000 in the fourth. Predictions suggest they will sell around 1.6 million cars by 2026, down from 1.79 million in 2024. Meanwhile, BYD sold about 1.7 million battery electric vehicles in 2024, and that number jumped to approximately 2.25 million in 2025, totaling 4.6 million vehicles when counting hybrids.
BYD’s lineup is diverse, offering everything from compact city cars to premium sedans and larger SUVs. They also produce electric buses and commercial vehicles globally.
Currently, Tesla offers the Model 3, Model Y, Model S, Model X, and the Cybertruck, which is still in limited production. Future vehicles like the Roadster and affordable robotaxis are on the horizon but not yet available.
Interestingly, Elon Musk’s political involvement has influenced Tesla’s sales. A study from Yale University found that Musk’s political actions might have reduced Tesla’s sales by 67-83%, equating to 1-1.26 million fewer vehicles sold. His position on various political issues seems to have shifted consumer sentiment, even boosting sales for other electric vehicle brands by 17-22%.
Initially, European customers were skeptical of Chinese EVs due to concerns about quality. However, since 2022, as BYD expanded its offerings and dealership networks, this perception has changed. In May 2025, BYD saw its first month of surpassing Tesla in battery EV registrations in Europe, with 7,231 vehicles registered compared to Tesla’s 7,165.
Despite the European Union imposing tariffs on Chinese-made EVs, BYD remains competitive in pricing. A standard Tesla Model 3 starts at around €41,000, while comparable BYD models can be found starting from €22,990. Even with added tariffs, BYD vehicles often remain more affordable, making them attractive to cost-conscious buyers.
As market dynamics shift, it’s clear that consumers are reevaluating their choices in the EV space. The landscape is increasingly competitive, and manufacturers must adapt to win over buyers.
For more details on the evolving electric vehicle industry, you can check out the detailed EU report on electric vehicle subsidies and competition here.
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Elon Musk, Tesla cars, battery electric vehicles, electric vehicles, BYD cars, Tesla sales, commercial vehicles, hybrid vehicles, electric cars
