Watch Out, Tesla: BYD Plans To Boost Sales Outside China As EV Push Revs Up

China’s BYD plans to boost sales outside its home market by 25% this year.

• BYD is pushing the pedal on international sales after becoming the world's top EV seller last year.
• Tesla might face greater competition from BYD in international markets, potentially in its stronghold, the European market.
• Tesla is set to report its Q4 results on Wednesday.

Tesla, Inc. investors may want to pay close attention. China's BYD Co. is increasingly setting its sights on the U.S. EV maker's core markets. BYD is targeting a 25% increase in electric vehicle sales outside China this year, aiming to sell 1.3 million vehicles overseas, Bloomber reported over the weekend, citing comments from the company's general manager, Li Yunfei.

Ironically, U.S. President Donald Trump's trade tariffs have accelerated BYD's international expansion, enabling the automaker to gain traction in markets such as Mexico. But the latest target underscores BYD's increasingly aggressive push to expand overseas sales — potentially encroaching on Tesla's strongholds such as Europe — as growth in the Chinese market sharply slows.

BYD's momentum has been especially notable over the past year. In 2025, the company overtook Tesla to become the world's largest electric vehicle seller, delivering 4.6 million vehicles — a 7.7% increase from the prior year. By comparison, Tesla delivered 1.64 million vehicles, marking an 8.4% year-over-year decline. 

But, EV Markets Still In Doldrums

To be sure, a global slowdown in the EV market — particularly in China — has weighed on both Tesla and BYD. The U.S. and China, the world’s largest EV markets, are phasing out tax subsidies and incentives even as competition among automakers intensifies.

Tesla said it delivered 418,227 vehicles in the October-December quarter, down 15.6%, and below analysts’ expectations of 434,487 vehicles. In December, BYD reported 420,398 deliveries, down 18.3% year over year and marking the fourth straight month of declines.

Citigroup in November said BYD had set a goal to expand overseas sales to between 1.5 million and 1.6 million units in 2026, citing a meeting with the company’s management, Bloomberg reported.

TSLA Under Pressure Heading Into Q4 Earnings

Owing to sluggish sales, Tesla's stock has been under pressure. It has gained 10.5% in the past 12 months, featuring in the middle of the Magnificent Seven peers (see chart). BYD’s U.S.-listed shares, BYDDY, gained 9.5% in the same period.

However, Stocktwits sentiment for TSLA was ‘bullish’ as of early Monday.

Tesla will report its fourth-quarter results on Wednesday. Analysts expect revenue to decrease nealy 4% to $24.8 billion, and adjusted profit to decline 38% to $0.45 per share, according to Koyfin.

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