Chinese giant BYD is expected to overtake Tesla as the best-selling electric vehicle manufacturer in the world as motorists continue to opt for affordable models.
In its latest filing, BYD reported sales of 2.25 million battery electric vehicles in the year-to-date period as of December 2025.
This represents a staggering 27.8 per cent growth compared to the same time last year, while its total "new energy vehicle" sales volume rose by 7.7 per cent.
In December, BYD sold 414,000 passenger vehicles, with 190,000 being EVs and plug-in hybrids accounting for 224,000 sales.
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Tesla is expected to publish its sales figures in the coming days, although experts have already highlighted BYD's growing dominance in the electric vehicle sphere.
Morgan Stanley has forecast growth for BYD once it launches new facelifts in early 2026 to refresh its line-up.
Eric Carlson, Head of Sustainability, Emerging Markets and Equity at Morgan Stanely, said the Chinese brand's competitive edge was down to its ability to "combine innovation with low costs".
He added that BYD had introduced a new charging technology, which is believed to be four times faster than a Tesla Supercharger, further boosting its offering for motorists.
BYD is expected to overtake Tesla as the best-selling electric vehicle brand
|BYD/REUTERS
In the UK, BYD sold 43,740 new vehicles between January and November, while Tesla registered 39,227.
Despite launching just over a year ago, BYD has already captured a market share of 2.33 per cent, while its sales have grown 488 per cent year-on-year.
Dan O'Dowd, Founder of The Dawn Project, told GB News: "BYD is accelerating as Tesla's sales, market share and profits are all declining.
"Elon is throwing a Hail Mary to pivot Tesla into an 'AI and robotics' company because BYD is crushing Tesla's ageing lineup. BYD is the company that Elon Musk promised us."
Tesla has dealt with a tumultuous year, headlined by Elon Musk's political interventions and an ageing line-up.
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BYD is already one of the best-selling brands in the UK | BYDMany criticised and even boycotted the electric vehicle manufacturer over Elon Musk's links to US President Donald Trump and other right-wing figures across the world, including Stephen Yaxley-Lennon, better known as Tommy Robinson.
His role as head of the Department of Government Efficiency (DOGE) in the US was also lambasted for cutting funding to Veterans Affairs and other aid agencies.
Despite the market uncertainties, Elon Musk took to social media site X, formerly known as Twitter, to praise the impressive sales record of the Tesla Model Y.
He wrote: "Tesla Model Y is now officially the world's best-selling car for the third year in a row!"
The new Tesla Model Y Standard | TESLAThe billionaire also responded to a comment which said that 2026 would be "the year of xAI", the AI company owned by Mr Musk.
He predicted that 2026 would be "something special", noting that Tesla, SpaceX and the Boring Company would also benefit.
Tesla recently unveiled the new Model Y Standard in a bid to appeal to new customers, with the affordable variant starting from £41,990.
The Standard has a top speed of 110mph, a 0-60mph acceleration time of 6.9 seconds and an impressive 314-mile battery range.