Tesla is struggling while BYD sales are storming ahead
BYD, Elon Musk's Chinese arch rival, posted a 60% sales surge in the first three months of the year, in stark contrast to Tesla's decline.
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- BYD, Tesla's Chinese rival, has been on a tear, with sales up 60% in the first three months of 2025.
- Tesla announced its worst quarterly sales since 2022 on Wednesday.
- Given its dire first-quarter deliveries, Elon Musk may be lucky Americans can't buy BYD cars.
After Tesla's rough start to the year, Elon Musk is probably lucky that Americans cannot buy BYD cars.
Tesla's Chinese nemesis had another spectacular quarter, with sales jumping 60% in the first three months of 2025.
BYD has sold about 416,000 EVs and 570,000 hybrids this year. Tesla vehicle deliveries, meanwhile, came in well below analyst expectations, with the automaker announcing first-quarter deliveries of 336,700 EVs on Wednesday.
It's the second successive quarter that BYD has outsold its rival, with Tesla battling plunging sales as protests against CEO Elon Musk and DOGE spread worldwide.
Most concerningly for Elon Musk, a growing proportion of BYD's sales are coming from outside China.
The Warren Buffett-backed automaker reported record overseas sales in March for the third time this year as it expands aggressively in international markets.
By contrast, Tesla's sales in Europe, its third-biggest market behind the US and China, collapsed by 42% in the first two months of the year.
High tariffs mean BYD does not sell its cars in the US, but it is squeezing Elon Musk's automaker in China by undercutting Tesla on price and overtaking it on innovation.
On Tuesday BYD opened presales of its Tai 3 SUV, which has a range of just over 300 miles and starts at 139,800 yuan ($19,270). There's also a version that includes BYD's on-board drone system priced at 203,800 yuan ($28,000).
BYD has also unveiled new self-driving technology and ultra-fast charging tech this year, and last month announced annual revenues that outstripped Tesla's.
Meanwhile, Tesla's stock price has collapsed since hitting new highs last December, as investors have signaled angst over Musk's involvement with DOGE and faltering sales.
Shares dipped again on Wednesday after Tesla announced its first-quarter deliveries before rebounding in afternoon trading.
