The battle of the electric vehicles seems to be comfortably leaning in favour of Chinese producer BYD as Elon Musk’s Tesla cars continue to underperform sales-wise, with the Chinese producer posting a nearly 28% increase in year-to-date sales for December.
Tesla sold around 480,000 of its Model 3 and Y in the third quarter, and around 400,000 in the fourth quarter, according to December estimates. 1.6 million models are expected to be sold in 2026, down from about 1.79 million in 2024.
In comparison, BYD sold about 1.7 million battery electric vehicles (BEVs) in 2024 and around 2.25 million in 2025. BYD’s total deliveries for BEVs and plug-in hybrids for 2025 reached around 4.6 million vehicles.
BYD or Build Your Dream has a vehicle line-up that ranges from compact electric city cars and hatchbacks to premium electric sedans and large SUVs, along with hybrid-powered options — as well as larger electric buses and commercial vehicles in many markets worldwide.
Right now, Tesla’s active customer line-up in 2026 consists of the Model 3, Model Y, Model S, and Model X — sedans and SUVs with varying sizes and performance goals — plus the Cybertruck in limited volume. Future cars like the Roadster and robotaxi-style low-cost EVs are anticipated but not yet available as mainstream sales models.
Musk’s politics weigh on Tesla
Musk, the South African-born investor and technology entrepreneur, made a high-profile entry into political debates after his $44bn (€37.6bn) acquisition of Twitter in October 2022, which he later rebranded as X.
Following the takeover, Musk increasingly used the platform to air views on immigration, diversity and inclusion initiatives, and European politics — including comments supportive of Germany’s far-right Alternative for Germany (AfD).
A Yale University study published in October found that Tesla sales would have been 67-83% higher if it weren’t for Musk’s political activities — equating to 1-1.26 million more vehicles sold. The study concluded that Musk’s actions also boosted sales of other electric and hybrid vehicles by 17-22%.
Musk later publicly backed Donald Trump and Republican causes, including a $288mn (€246mn) contribution to Trump-aligned political committees during the 2024 election cycle — described in US media as the largest single donation in modern presidential campaign financing.
After Trump’s return to office, Musk was appointed to lead the newly created Department of Government Efficiency (DOGE), which subsequently oversaw the dismantling of USAID, a central vehicle for US international development and humanitarian assistance.
Before Musk’s political turn, Tesla vehicles were widely regarded as the benchmark for cutting-edge electric cars and were closely associated with environmental progress and the decarbonisation of road transport.
China enters the fray
Initially, European consumers treated Chinese EVs with scepticism, associating them with lower quality and limited brand recognition.
But as BYD and others expanded their model ranges and dealership networks in Europe from late 2022 onwards, their price advantage and technological advancement began shifting demand in Western markets.
In May of 2025, Chinese carmaker BYD registered more battery-powered electric vehicles in Europe than Tesla for the first time, with 7,231 compared to Tesla’s 7,165.
This is despite the fact that the European Union introduced tariffs on Chinese-made electric vehicles following an anti-subsidy investigation by the European Commission.
The EU concluded that Chinese EV manufacturers benefitted from state subsidies — including cheap financing, tax breaks, and preferential access to land and raw materials.
The bloc subsequently argued that this distorted competition and imposed an additional 17% tariff for BYD on top of the standard 10% car import tariff.
Even with that tariff, BYD cars remain competitively priced in Europe. A standard Tesla Model 3 starts at roughly €41,000, while comparable Chinese models such as the BYD Dolphin begin at around €35,500. The Dolphin Surf is listed in many European countries from about €22,990.
Larger BYD vehicles, such as the BYD Seal, typically sit within the €42,700–€48,200 price range in Europe — sometimes similar to or below equivalent Tesla costs. Such pricing helps BYD to appeal to cost-conscious consumers even as EU tariffs raise import costs.
