BYD Co., China’s leading electric vehicle (EV) manufacturer, has continued its streak of outselling Tesla on a quarterly basis, marking the fourth consecutive quarter the Chinese automaker has surpassed its US rival. This comes even as BYD reported its first total sales decline in 18 months during September, signaling a slowdown in momentum.
BYD Outperforms Tesla Quarterly
Despite Tesla selling a record number of vehicles in the past quarter, BYD maintained its lead in global fully electric vehicle sales. The Chinese carmaker has delivered more EVs than Tesla for four straight quarters, a remarkable feat in the competitive electric vehicle market.
Through the first nine months of 2025, BYD has sold nearly 390,000 more EVs than Tesla, positioning it to surpass the US automaker in annual battery-electric vehicle sales for the first time. Analysts project BYD will deliver around 2.17 million battery-electric vehicles this year, compared with Tesla’s estimated 1.61 million units.
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Challenges in the Chinese Market
While BYD continues to outperform Tesla globally, the company is losing momentum in its domestic market. Policymakers in China have expressed concern over destructive competition, particularly as carmakers engage in aggressive price wars. BYD has been a prominent participant in these discounting strategies, contributing to a surprise 30 percent drop in quarterly profit reported in late August.
Reflecting these headwinds, BYD has lowered its sales target for 2025 to 4.6 million fully electric and plug-in hybrid vehicles, nearly one million units below its earlier forecast. This adjustment highlights the growing challenges in China’s EV market despite the company’s global success.
Tesla Faces US Market Headwinds
Tesla also faces hurdles, particularly in its largest market, the United States. The federal tax credits supporting EV purchases, which could provide up to $7,500 per vehicle, expired at the end of September. As a result, analysts expect Tesla’s US sales to slow, potentially leading to a second consecutive annual decline.
Through the first nine months of 2025, Tesla delivered 497,099 vehicles in the third quarter, yet overall sales fell almost 6 percent year-to-date. CEO Elon Musk has warned that Tesla could experience “a rough few quarters” without the federal incentives.
Tesla’s Strategic Focus
Beyond vehicle sales, Musk has emphasized Tesla’s development of driverless cars and humanoid robots. However, he acknowledged that autonomy has yet to generate significant revenue and provided few details on the commercialization progress of Tesla’s Optimus robot.
Market Outlook and Analyst Projections
Analysts continue to forecast a strong year for BYD, projecting that the automaker will surpass Tesla in annual EV deliveries by a wide margin. The average estimates suggest BYD will deliver approximately 2.17 million battery-electric vehicles, while Tesla is expected to reach around 1.61 million units.
Despite the challenges in both China and the US, BYD’s consistent quarterly performance underscores its position as a leading global EV manufacturer. Tesla, meanwhile, faces growing headwinds from the expiration of federal incentives and slowing US demand, highlighting a pivotal year for both companies in the global EV market.
Conclusion
BYD has extended its streak of quarterly outperformance against Tesla to four straight quarters, achieving global sales leadership in fully electric vehicles. However, domestic challenges, including regulatory concerns and profit pressures, are impacting growth. Tesla faces headwinds in the US with expiring tax credits and slowing demand, even as it invests in future technologies. Analysts predict BYD will end the year significantly ahead in total EV deliveries, marking a notable shift in the global electric vehicle landscape.
