In the past decade, Tesla has risen from relative obscurity to become a powerhouse in the EV market. Even established motoring juggernauts such as VW, Volvo, Kia, etc who have invested heavily into expanding their own electric offerings, have struggled to hold a torch to the Tesla Model 3 and Model Y, which continue to dominate the UK, European, American, and Chinese EV markets. However, Tesla have far from locked down these markets and their grip has loosened considerably in the past few months.
This is primarily due to the surge in popularity of Chinese EV outfits, particularly the Shenzhen-based BYD, who have been able to significantly undercut Tesla in terms of price, without sacrificing technology or quality. The growing threat to Tesla’s supremacy posed by BYD is stark when examining their sales figures. Last year, BYD’s sales revenue registered a 29% increase to £83 billion ($107 billion), while Tesla lagged at £75 billion. This signified the first time BYD sales had broken the $100 billion threshold.
The Chinese firm also saw their profits swell by 34% to a staggering £4.3 billion, as their economical alternatives continue to entice those consumers in the UK, Europe, and China who are being forced to tighten their purses in the face of mounting financial pressures. Their success has largely been driven by sale of hybrid vehicles, which account for the majority of the 4.3 million deliveries in 2024. Even so, the 1.76 million EVs sold by BYD last year parallels the 1.79 million sold by Tesla, a figure that was down 1% from the previous year.
The good news does not stop there for BYD as their share price has shot up by more than 50% since the start of 2025, while Tesla’s has waned by 44% since their apex in December 2024. Moreover, the burgeoning company is also backed by Warren Buffet, a household name in investment, who has undoubtedly helped to enrich their stock and portray them as a credible alternative to Tesla.
While BYD have expanded their share in various markets, Tesla have suffered sharp downturns in sales, especially in Europe, where they have plummeted by 42.6% so far in 2025. According to Jato Dynamics, Tesla’s share of the battery electric vehicle (BEV) market in the UK and a slew of EU countries slumped to 9.6% in February and their sales dropped to fewer than 16,000 vehicles. Both these figures pale in comparison to last year where Tesla seemed to be in their ascendancy.
This comes despite a growing appetite for electric vehicles in Europe and a 17% export tariff on BYD and other Chinese vehicles entering the EU. Some of Tesla’s underperformance in the UK and Europe can be attributed to Elon Musk’s recent entanglement in US and world politics. Many of the Tesla CEO’s actions have soured public opinion since US President Donald Trump named him as the head of the Department for Government Efficiency (DOGE). Musk’s explicit support of far-right political figures and parties such as Germany’s AFD, scrutiny of the Labour UK government, and controversial salute at a Trump rally have drawn widespread combination.
Meanwhile, BYD have been striving to turn heads away from the traditional mainstays of the EV and hybrid markets. Recently founder Wang Chuanfu revealed new battery technology capable of charging a vehicle in 5 minutes, which surpasses Tesla’s supercharger system that replenishes a depleted battery in 15 minutes. BYD also launched the Qin L sedan, which is roughly half the price of a Tesla Model 3 in China and pledged in February that their propriety “God’s Eye” driver assistance system would come as standard in all models at no extra cost.
BYD are quickly becoming a big name in the EV market by delivering affordable electric and hybrid vehicles with competitive technology. Overtaking Tesla’s sales is an incredible achievement for the Chinese brand and one that will help to grab the attention of more and more consumers eager to make the change away from petrol and diesel. It remains to be seen how Tesla will respond to address the increasingly ferocious competition and improve their fortunes.