In 2026, BYD surpassed Tesla as the world’s largest EV seller, selling 2.26 million battery-powered electric vehicles, compared to Tesla’s 1.64 million deliveries. This milestone may push Tesla to refresh its lineup and margins as BYD expands internationally and intensifies competition. Wall Street remains bullish on BYD, with a 57% upside potential.

BYD’s rise reflects China’s growing dominance in the EV market, but its growth is slowing, with 7.7% sales growth in 2025, the slowest in five years. Despite outselling Tesla, BYD’s financials show strain, with revenue down 3% YoY, net profit dropping 32.6%, and diluted EPS falling 36% YoY. Management has cut its 2025 sales target by 16%.

BYD’s stock trades at a premium, with a P/E ratio of 21, double the auto industry average, and a price-to-sales ratio near large global automakers. Analysts foresee future growth reliant on new models and exports but remain optimistic about BYD’s prospects. Major firms have upgraded BYD’s price targets, citing its dominance in EVs and growth potential.

Read more at Yahoo Finance: Tesla Just Lost Its Crown. Should You Ditch TSLA Stock and Buy This No. 1 EV Seller Instead for 2026?