Beijing/New York, May 2025 — In a major shift in the global electric vehicle (EV) market, Chinese automaker BYD (Build Your Dreams) has surpassed U.S.-based Tesla in quarterly EV sales for the first time, raising significant questions about the evolving balance of power in the global automotive industry.
According to data released for the final quarter of 2024, BYD delivered approximately 526,000 battery electric vehicles (BEVs), outpacing Tesla’s 484,000 units during the same period. The development marks the first time Elon Musk’s Tesla has been dethroned as the quarterly leader in global BEV sales—a position it has held since dominating the market with the Model 3 and Model Y.
The record-setting performance by BYD is largely attributed to strong domestic demand in China, where the government continues to provide substantial subsidies, infrastructure support, and favorable policies to accelerate the transition to clean energy vehicles. Analysts also point to BYD’s extensive model lineup, competitive pricing, and increasing overseas expansion as key drivers behind its growth.
“This is a watershed moment,” said an industry analyst at Shanghai EV Watch. “It shows that China is not just the largest EV market, but is rapidly becoming the manufacturing and innovation hub of the electric mobility revolution.”
Tesla, while still a leader in global EV sales on an annual basis, has been facing increasing pressure due to supply chain challenges, price competition, and intensifying competition in key markets. The company recently implemented several price cuts across its product range and is ramping up production capacity at its Gigafactories in the U.S., Germany, and China to maintain market share.
Elon Musk has acknowledged the growing challenges in recent public comments, emphasizing the need for innovation and efficiency to stay ahead. “We are not just in a race against other automakers, but against time,” Musk said during Tesla’s last earnings call.
Meanwhile, BYD continues to benefit from its vertically integrated business model, which allows greater control over battery production and supply chains. In addition to its stronghold in China, BYD has recently announced plans to establish new manufacturing facilities in Hungary and Brazil, signaling a major international push.
Experts say this sales milestone signals a broader trend: China’s growing dominance in next-generation mobility. The Chinese government’s “Made in China 2025” initiative, which includes EV leadership as a strategic goal, has catalyzed significant investment in technology, infrastructure, and global partnerships.
The development has raised concerns among U.S. and European automakers, many of whom are still ramping up EV capabilities. There is growing consensus that the West may need to accelerate innovation, increase subsidies, and reconsider trade policies to stay competitive in the global EV race.
In the coming months, industry watchers will closely monitor whether BYD can maintain its lead or whether Tesla will reclaim the top position. Either way, the rivalry is expected to intensify, shaping the future of mobility in profound ways.
