BYD is poised to reclaim the title of world leader in all-electric vehicle sales from Tesla, driven by the Chinese automaker's accelerating shipments to overseas markets.
The manufacturer of the Dolphin model delivered approximately 557,090 battery-electric vehicles during the three months ending in June, according to figures released Wednesday. While this number is lower than the same period last year, it is still likely enough to surpass Tesla's sales.
The American company is expected to announce quarterly sales of approximately 396,500 vehicles next week, according to analyst estimates compiled by Bloomberg.
BYD shares surged 8.4% in early trading in Hong Kong on Thursday, marking their biggest intraday gain since February 2025.
BYD outperforms Tesla
BYD had overtaken Tesla for the first time in the fourth quarter of 2024 and maintained a significant lead throughout 2025, after Elon Musk’s political activities and close ties to US President Donald Trump angered consumers, especially in Europe.
However, Tesla regained the lead in the first quarter of this year, ahead of BYD by about 48,000 cars, after weak demand in China put pressure on its competitor's sales within its home market.
Competition is heating up in the electric car market
BYD's total sales across all payment systems and vehicle types rose by 5.5% in June, reaching 403,472 units, with approximately 43% of those sold in overseas markets, reflecting the importance of the company's global expansion.
As the price war intensifies in the Chinese car market, BYD is focusing on developing its technologies to compete with companies like Geely Automobile Holdings and Xiaomi.
In late May, BYD unveiled a package of advancements, including what it described as the most powerful chip in China for autonomous vehicles, at a time when advanced driver assistance systems have become a major arena for competition. The company is also accelerating production of its next-generation Blade batteries.
In contrast, Tesla launched a recruitment campaign in China for jobs related to driver assistance systems, following repeated delays in launching technology that is crucial to competing with local companies.
Global electric vehicle sales are on track for another record year, despite slowing growth in key markets. In China, the world's largest market, sales of new energy vehicles, including electric and plug-in hybrid vehicles, fell 7.5% year-on-year in May, according to the China Passenger Car Association.
