Elon Musk once mocked China’s BYD. Now the EV giant is outselling Tesla

A confident Elon Musk in 2011 chuckled and dismissed China's BYD as a competitor to Tesla. When asked about BYD as a competitor in the electric vehicle (EV) space, Musk scoffed, “Have you seen their car?”. He doubted both the quality and technological prowess of the Chinese automaker and at that time, Tesla was the undisputed trailblazer in the EV market. BYD was still finding its footing at that time.


Now fast forward to 2025, and the tables have turned. BYD has not only caught up but has overtaken Tesla in global EV sales. In 2024, BYD reported annual revenue that leapfrogged rival Tesla.

How BYD outsold Tesla

Tesla cars now facing increasing competition from BYD. In January, BYD delivered more than 296,000 vehicles, vastly outpacing Tesla’s China-made EV sales of 63,238 units. The irony? The company Musk once mocked is now beating Tesla—both in sales volume and revenue.

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The Shenzhen-based firm said its revenue rose by 29% to come in at 777 billion yuan ($107bn; ?83bn), boosted by sales of its hybrid vehicles. This topped the $97.7bn reported by Tesla. BYD also launched a lower-priced car to rival Tesla's Model 3, which has long been the top selling EV in China.

Tesla, once stood at the pinnacle of EV success, has now seen a sharp decline in sales and dominance and experts believe Musk's controversial role in the President Donald Trump administration has had an effect too. Tesla sales have plummeted to their lowest level in three years after a backlash against its boss Elon Musk.

The electric car maker delivered almost 337,000 electric vehicles in the first three months of 2025, a 13% drop from a year ago. This comes as Tesla faces a backlash around the world over Musk's proximity to Donald Trump, while Chinese carmakers have been hit with tariffs in Western countries.

It was in 2024 when the Chinese EV giant saw its quarterly revenues soar, beating Tesla's for the first time. It posted more than 200bn yuan ($28.2bn, ?21.8bn) in revenues between July and September. This was a 24% jump from the same period last year, and more than Elon Musk's company whose quarterly revenue was $25.2bn.

Unlike Tesla, which depends heavily on battery-powered vehicles, BYD has leveraged a hybrid-electric approach, making EV adoption more accessible to a broader audience. Moreover, BYD's bold expansion strategy has allowed it to introduce budget-friendly models that go head-to-head with Tesla’s top offerings. Its newest low-cost vehicle challenges the Tesla Model 3, which had long held the title of China’s best-selling EV. As Tesla’s market share in China declined, BYD’s surged—highlighting the brand’s rising dominance in the EV landscape.

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Musk's political ties

Tesla has been facing massive protests and boycotts around the world prompted by Musk's outspoken and controversial political involvement. The backlash against Musk has included "Tesla Takedown" protests at Tesla dealerships across the US and in Europe. Musk is heading Donald Trump's Department of Government Efficiency (DOGE) initiative to streamline government operations and slash federal costs.

Tesla's decline is not just economical- it's political too. Musk's close ties with Trump has played a huge role in Tesla's recent struggles, experts believe. The Tesla boss is the world's richest man and contributed more than a quarter of a billion dollars to help Trump get elected in November.

Once celebrated as a pioneer of climate-friendly innovation, Tesla is now distancing itself from the very audience that once embraced electric vehicles as a path to environmental progress. Many liberals—formerly strong supporters of Tesla’s green mission—now see Elon Musk as a polarizing figure, which is increasingly affecting the company's brand image. In recent weeks, he poured millions into a Wisconsin Supreme Court race, supporting former Republican attorney general Brad Schimel who was soundly defeated in a big setback.

But things are not the same with BYD. It has kept itself away of political entanglements and has focussed solely on innovation and aggressive market expansion, according to a Bloomberg report. While Tesla battles public backlash, showroom protests, and even reports of vandalism against its vehicles, BYD is riding a wave of global acceptance.

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Dated models and overseas competition

Tesla has been facing mounting challenges. For instance, the once ground-breaking Model S, which was once cutting edge, has been on sale since 2012, the Model X since 2015. Even the more recent and more affordable Model 3 and Model Y are beginning to look dated in an increasingly competitive market.

"If you look at their product line-up, they haven't had any fresh models recently, except for the Cybertruck, which is really niche," Valdez Streaty, director of industry insights at car sector marketing and software firm Cox Automotive told BBC. "They've had a refresh of the Model Y, but it's not a big splash. And there's so much more competition out there."

Prof Peter Wells, director of Cardiff University's Centre for Automotive Industry Research, echoed similar sentiments. "We've not seen the level of innovation in terms of the product range that perhaps Elon Musk should have been looking for. I think that is a big part of their problem," Wells explained.

Competition is intensifying from multiple fronts. Established automakers have heavily invested in electric vehicle production, with Korean brands like Kia and Hyundai gaining recognition for their well-built, reliable EVs.

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Not to forget, a wave of new Chinese EV manufacturers has entered the market. Brands such as BYD have grown rapidly by offering affordable models with solid performance, while premium players like Xpeng and Nio are targeting the luxury segment with cutting-edge technology and design.

"China has amazing incentives and subsidies for EVs," Valdez Streaty told BBC. "You can see how Chinese firms, especially BYD, continue to grow not only in China but in other parts of the world. So that definitely is a huge threat, not just for Tesla but for other manufacturers as well."

The technological shift

Tesla’s technological lead is increasingly under pressure. While its fast-charging system takes around 15 minutes, BYD has introduced a new battery capable of charging in just five minutes while offering a 400-kilometer range.

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BYD is also making waves with self-driving technology that matches Tesla’s capabilities—but at no extra cost, unlike Tesla’s premium pricing for autonomous features. At the same time, major players like Volkswagen, General Motors, and Ford are making significant strides in the EV space, steadily eroding Tesla’s once-dominant position.

The resurfaced video of Musk mocking BYD clearly shows how quickly the industry has evolved. What was once a punchline is now the new face of EV leadership. While Tesla’s brand and influence remain strong, the competition has caught up, and in some areas, surpassed it. Musk’s laughter in 2011 may have been justified at the time, but in 2025, BYD is having the last laugh.