Elon Musk Podcast BYD Outsold Tesla by 600,000 Cars. Here's How
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Jan 4, 2026 For the first time, BYD has overtaken Tesla in electric vehicle sales, delivering 2.26 million cars compared to Tesla's 1.64 million. The expiration of the EV tax credit and Tesla's aging lineup are impacting its market position. Meanwhile, BYD thrives with competitive pricing, a diverse product range, and strong international expansion. Political backlash against Musk has further complicated Tesla's trajectory, raising questions about whether the company can reclaim its EV crown amidst growing competition.
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Musk's 2011 Dismissal Backfires
- In a 2011 Bloomberg interview Elon Musk laughed at BYD and said he didn't think they had a great product.
- Fourteen years later, BYD leads global EV sales, a reversal Musk later acknowledged.
Tax Credit Expiry Pulled Demand Forward
- The $7,500 US federal EV tax credit expired end of September, causing a Q3 pull-forward of nearly 497,000 deliveries.
- When the credit vanished, demand softened and inventory piled up, raising days of supply to 149 by November.
Incentives Couldn't Reverse Weak Demand
- Tesla offered aggressive incentives like 0% financing and $5,000 lower pricing on new base models but still couldn't halt declines.
- Persistent weak demand is evidenced by rising inventory and prolonged days of supply.