Tesla vs. BYD: Which Stock Has the Edge Right Now?

TLDR

• BYD captured the top spot in global EV sales for 2025 with 2.26 million vehicles sold versus Tesla’s 1.8 million
• Tesla’s sales fell 9% in 2025 marking the second year of declines, while BYD grew 28% year-over-year
• BYD outsold Tesla in key European markets including Germany and the UK during 2025
• The Chinese manufacturer offers 40+ vehicle models across six continents but remains blocked from U.S. market
• BYD is in talks with Ford to supply EV batteries for non-U.S. manufacturing facilities

BYD has officially surpassed Tesla as the world’s largest electric vehicle seller. The Chinese automaker delivered approximately 2.26 million EVs throughout 2025. Tesla sold 1.8 million vehicles in the same timeframe.

Tesla, Inc., TSLA

This milestone marks the end of Tesla’s decade-long position as the global EV sales leader. Tesla recorded a 9% drop in sales during 2025. This represents the company’s second consecutive year of declining deliveries.

BYD experienced a 28% surge in sales compared to 2024. The manufacturer now distributes vehicles across more than 100 countries on six continents. The company remains absent from the U.S. market due to tariffs over 100% and regulatory barriers.

The two companies pursue different business strategies. Tesla positions itself as a software company that manufactures cars, focusing on autonomous driving and robotics. BYD concentrates on producing affordable electric vehicles through its vertically integrated manufacturing model.

European Markets Fuel BYD Growth

BYD secured victories in Europe’s two largest electric vehicle markets during 2025. German buyers purchased 23,306 BYD EVs compared to 19,390 Teslas. In the United Kingdom, consumers registered 51,422 BYD vehicles against 45,513 Teslas.

The company operates one manufacturing facility in Hungary for trucks and buses. Two additional plants will come online in 2026. A second Hungarian factory starts production in the second quarter, while a Turkish facility begins operations later in the year.

BYD customizes its product lineup for different regions. European customers can choose a station wagon model offering 800 miles of range. The company designed a kei car variant for Japanese urban environments.

The automaker produces more than 40 different models under several brand names. These include the main BYD brand, premium options Denza and Yangwang, and the Fangchengbao SUV range. Vehicle prices span from $12,000 for entry-level models to over $250,000 for luxury offerings.

Market Expansion and Technology Development

BYD is working on a battery supply agreement with Ford Motor Company. The potential deal involves providing EV batteries for Ford plants located outside the United States. BYD manufactures batteries for its own vehicles and sells to other automakers including Tesla.

President Donald Trump stated that Chinese automakers could establish U.S. manufacturing operations. Currently, no Chinese car companies operate factories on American soil. Trump indicated that foreign manufacturers using American workers would be acceptable.

The company unveiled advanced charging infrastructure in March 2025. BYD’s 1,000-kilowatt chargers deliver 250 miles of range in just five minutes. The rollout plan includes 4,000 chargers in China and 300 in the United Kingdom by 2026.

BYD started as a phone battery manufacturer in 1995. The company entered automotive manufacturing in 2003 and launched its first electric vehicle in 2008. Berkshire Hathaway acquired a 10% ownership stake that year for $230 million.

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