BYD Beats Tesla in EV Sales For Second Quarter in A Row

If you’ve been paying close attention to global EV trends, one name keeps popping up more and more: BYD. Once a domestic Chinese powerhouse, BYD is now not just knocking on Tesla’s door, it’s stepping through it.

In Q1 2025, BYD officially outpaced Tesla in global battery electric vehicle (BEV) deliveries for the second consecutive quarter. They sold a staggering 416,388 all-electric passenger vehicles, blowing past Tesla’s 336,681.

We saw this coming. Back in Q4 2023, BYD topped Tesla with 595,413 BEVs compared to Tesla’s 484,507. Although Tesla rebounded slightly in early 2024 and narrowly won the full-year tally (1.79 million vs BYD’s 1.76 million), the writing was on the wall. Fast forward to now, and the tide has turned decisively.

▶️MORE: BYD Reaches 1 Million EVs And Hybrids in Q1 Sales

Why BYD’s Surge Matters for Aussie EV Drivers

Here in Australia, we’ve seen growing appetite for EVs, and not just Teslas. More and more Aussies are hunting for affordable, practical, and well-built alternatives. That’s where BYD enters the chat.

BYD’s expansion strategy is laser-focused on global markets like Europe, Southeast Asia and Australia. In fact, BYD is the second best selling electric car brand in Australia. While their exports currently make up just 10% of total sales, the company is rapidly scaling. BYD’s CEO, Wang Chuanfu, recently announced the goal to nearly double overseas shipments in 2025, pushing the number past 800,000 units.

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A Technological Edge That’s Hard to Ignore

What’s fuelling BYD’s explosive growth isn’t just pricing but also innovation. The company recently unveiled a groundbreaking 1,000V electrical architecture with 10C charging batteries and silicon carbide power chips. Translation? You can add 400km of range in just five minutes. That’s game-changing for anyone who’s ever sat impatiently at a charging station (aka all of us).

Compare that to Tesla’s Supercharger, which adds about 275km in 10 minutes, thats more than twice as fast.

BYD’s Blade Battery is another secret weapon. It’s safer, cooler (literally), and designed for longevity.

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Tesla’s Struggles

While BYD surges, Tesla’s hitting a few potholes. The brand’s facing slumping sales in Europe, down a jaw-dropping 40% in February alone. In China, Tesla’s market share has dropped to just 4%, while BYD commands a dominant 27%.

It’s not just about competition. Tesla’s struggles are also tied to Elon Musk’s increasingly controversial public image. His political role as head of the U.S. Department of Government Efficiency (DOGE) has led to backlash both in the States and overseas. Vandalised showrooms, protests, declining used car values—it’s all piling up.

There is also the growing supply chain headaches stemming from U.S.-China trade tensions and rising tariffs. It’s a tough time to be Tesla.

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BYD’s Global Playbook And What It Means for Us

BYD’s rapid rise isn’t just about selling more cars. It’s about reshaping the global EV game. Their vertically integrated model gives them a huge edge in cost, quality control, and scalability.

They’ve already opened two manufacturing hubs in Europe (Hungary and Turkey), and a third may be on the cards. No word yet on an Australian plant, but BYD’s local distributor EVDirect has made it clear that our market is a key focus.

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As EV uptake grows in Australia (NSW alone recently hit 10% EV sales share), we can expect more BYD models to land here. And with innovations like their new autonomous driving system, launched in Q1 and rivalling Tesla’s Full Self-Driving feature, it’s clear that BYD isn’t just chasing the market. They’re leading it.

A Crowded Chinese Market Breeds Global Giants

Behind the scenes, there’s more movement in China’s auto industry. With over 100 domestic EV brands jostling for position, we’re seeing major consolidation. Dongfeng and Changan: two of China’s legacy automakers are reportedly in merger talks. If it goes through, it could create the world’s fifth-largest automaker.

It’s a reminder that while the West often focuses on Tesla vs. BYD, the bigger picture is a wave of highly capable Chinese EV makers preparing for global dominance.

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The Road Ahead

So what does this mean for Australian EV enthusiasts?

More choice. Better prices. Faster charging. And some serious competition that will force every automaker, from legacy giants to tech disruptors, to lift their game.

BYD is no longer just “that Chinese brand.” It’s becoming a global force in the electric car race.