---
title: "Is BYD Co. About to Leave Tesla in the Dust?"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/260850316.md"
description: "BYD Co. is poised to outpace Tesla in electric vehicle (EV) deliveries for 2025, having delivered more full-electric vehicles globally than Tesla for four consecutive quarters. Despite a recent sales decline, BYD's total sales through the first three quarters of 2025 exceed Tesla's by nearly 390,000 units. However, both companies face challenges: BYD is experiencing a price war in China, while Tesla is grappling with a global slowdown in deliveries and the end of a federal tax credit. Despite these hurdles, BYD's diversified product range and strategic positioning suggest strong long-term potential."
datetime: "2025-10-13T07:56:03.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/260850316.md)
  - [en](https://longbridge.com/en/news/260850316.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/260850316.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/260850316.md) | [繁體中文](https://longbridge.com/zh-HK/news/260850316.md)


# Is BYD Co. About to Leave Tesla in the Dust?

It's been a pretty wild roller-coaster ride for **Tesla** (TSLA -4.97%) investors in 2025. The company has dealt with a plethora of developments, both bad and good, sending its share price plunging through the first three months of the year before rebounding 40% during the third quarter.

The good news is that Tesla posted strong third quarter results, but the bad news for Tesla is that **BYD** (BYDDY -5.33%) is likely still going to far outpace its rival for the full year. Here's a look at the important details.

BYD Sealion. Image source: BYD Co.

## It's not wise to look at just one quarter

Tesla reported a 7% increase in third-quarter deliveries, compared to the prior year, as many consumers flocked to dealerships to purchase electric vehicles (EVs) before the expiration of a $7,500 federal tax credit. While the influx of buyers was welcomed during the third quarter, there will likely be an equally strong lull in demand during the fourth quarter as consumers grapple with a new pricing reality that doesn't include the tax credit unless under special leasing circumstances.

Tesla's total deliveries reached 497,099 during the third quarter, with production at 447,450 vehicles. With production volume declining compared to the prior year, Tesla was able to work down some inventory ahead of the likely fourth-quarter slowdown. EV makers with a large surplus of inventory heading into October would be in a much tougher position and likely require extra incentives or discounts to move product -- not financially healthy, nor supportive of margins.

Tesla's third-quarter delivery result was plenty to top estimates. However, despite topping estimates, it's clear Tesla is facing a global slowdown in deliveries. In fact, Tesla's deliveries reached 1.2 million through the first three quarters of 2025, down from 2023 and 2024, which both posted about 1.8 million, and even lower than 2022's 1.3 million.

The EV maker's third quarter was partially held back by a continued sales slump in Europe, which has been plagued by consumer backlash against CEO Elon Musk's political activism and rhetoric, as well as increased competition from competitors such as **Volkswagen** and BYD.

## Speaking of BYD

While Tesla managed to sell a record number of vehicles during the third quarter, BYD Co. still has the upper hand. China's juggernaut EV maker has now delivered more full-electric vehicles globally than Tesla for four consecutive quarters, and this result was despite BYD registering its first total sales decline in 18 months during September.

The third quarter sets BYD up to do something it has yet to achieve: Outsell Tesla in battery electric vehicles for a full calendar year. Through the first three quarters of 2025, BYD has sold nearly 390,000 more EVs than Tesla.

All that said, and despite strong third-quarter results, the future is filled with speed bumps for each global EV powerhouse. On BYD's end of things, the company is losing momentum in its home Chinese market, where there is an ongoing and brutal price war eroding margins across the industry. Remember that BYD surprised investors with a 30% drop in quarterly profit when it reported in late August.

On Tesla's end, it will have an incredibly difficult time matching the third-quarter surge as the U.S. phased out the $7,500 federal tax credit at the end of September.

## Is BYD a buy?

BYD, seeing the signs across the globe, has lowered its sales goal for 2025 to 4.6 million fully electric and plug-in hybrid vehicles. If you're keeping track, that's roughly 1 million vehicles lower than its previous target. Despite the dent in BYD's once seemingly impenetrable armor, the company is still well positioned to thrive long term, especially once the price war in China abates, whether through industry consolidation or other means.

BYD is expanding its brands into higher-margin ultra-premium vehicles, controls its supply chain, makes many of its vehicle parts in-house for vertical integration, localizes production, and adapts its vehicles in a wide range of markets. BYD also offers investors a bit of diversification compared to traditional EV makers that focus solely on passenger cars. BYD also sells buses, forklifts, high-speed trains, and even boasts utility-scale energy storage solutions.

Despite headwinds in its home market, the Chinese EV maker is poised to surge past Tesla's deliveries for the full calendar year, remains well positioned globally with a proven market growth strategy, and still has plenty of long-term upside considering it has yet to dabble in the valuable U.S. market. BYD remains an excellent investment option in the automotive industry.

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