NEWSCENTRAL notes that in 2025, the Chinese company BYD overtook Tesla in annual sales, becoming the world’s largest electric vehicle manufacturer. This event marked a significant milestone in the global race for dominance in the electric vehicle industry, where competition between major players such as Tesla and Chinese manufacturers continues to intensify.
Tesla reported selling 1.64 million electric vehicles in 2025, an 8.9% decrease compared to the previous year. This marks the second consecutive year of declining sales, prompting experts to revise future forecasts. Among the reasons for this decline are the end of government subsidies for electric vehicle purchases in the U.S., which had a significant impact on demand, and increasing competition from Chinese manufacturers like Geely and NIO. Despite the drop in sales, Tesla remains a profitable company, highlighting its resilience amidst market changes.
In response to these challenges, Tesla released more affordable versions of its models to stimulate demand, but this was not enough. NEWSCENTRAL believes that the company will have to adapt its strategies to maintain its leadership. It is crucial for Tesla to continue investing in new technologies and improve its competitiveness in the rapidly changing electric vehicle market.
In contrast, BYD demonstrated impressive results in 2025, increasing sales by nearly 28%, reaching 2.25 million vehicles. This made the company the global leader in sales volume, surpassing Tesla by more than 600,000 vehicles. BYD’s success is attributed to both domestic and international factors. The company continued to actively expand its presence overseas, particularly in Latin America, Southeast Asia, and Europe, leading to significant sales growth in these regions. For instance, in the UK, BYD’s sales grew by 880% due to the rising demand for hybrid vehicles.
Despite its success in foreign markets, BYD’s growth rate began to slow down in the Chinese market, which presents new challenges for the company. NEWSCENTRAL sees this as a signal for BYD to focus on product development and enhance its competition with other Chinese brands. In the face of tough competition in its home market, the company will need to find new ways to stimulate demand.
Automotive analyst at NEWSCENTRAL, Jessica Kline, notes: “In 2026, competition in the electric vehicle market will only intensify. We expect key players like Tesla and BYD to fight for market share with an even greater focus on price reduction, quality improvement, and the implementation of innovative technologies like autonomous vehicles.”
NEWSCENTRAL believes that the 2026 forecast suggests that both Tesla and BYD will continue to face challenges. However, new technologies and strategic expansion into international markets could become the main growth drivers. Tesla will need to increase its efforts in developing and implementing autonomous vehicle technologies and robotaxi services, which experts believe could restore its leadership.
For BYD, the key factor will be continued growth in foreign markets, especially in Europe and Latin America. The company will also need to expand its model range to meet the demands of different consumer segments. NEWSCENTRAL predicts that in 2026, the Chinese company will continue to increase its market share on the international stage, including through the introduction of new, more affordable models.
We at NEWS CENTRAL forecast that the electric vehicle market will continue to develop dynamically in 2026, and the competition between Tesla and Chinese companies like BYD will become even more intense. Key factors for success will include innovation, localization of production, and the ability of companies to quickly adapt to new economic and technological realities.