Tesla may have started the electric vehicle revolution. Since the introduction and sale of the Model S in 2012, the American automaker has made new-energy vehicles desirable.

As the years passed, Tesla launched one new model after another, covering a good chunk of passenger vehicle segments. So, understandably, the company dominated global EV sales and led for a few years.

Challengers from the US and around the world came and went. But one of the biggest threats to Elon Musk’s company wasn’t even another EV maker.

Last September, US president Donald Trump (yes, the presidential candidate Musk campaigned so passionately for) pulled the plug on tax credits that come with EVs. This jacked up the prices of Teslas and other new-energy vehicles from other brands.

This consequently slowed down the new-vehicle sales.

But long before this pronouncement by Trump, a challenger had already been hounding Tesla—BYD. More than offering significantly more affordable models, the Shenzhen-based company also produces its patented Blade battery packs and other technologies, making it a worthy Tesla competitor.

While Musk initially brushed the threat of BYD aside, the Chinese automaker came up with many models, loaded them with great features, and sold them for much less than a Tesla. According to a Reuters report, BYD’s sales went from less than 500,000 units a year in 2021 to over a million vehicles in 2025.

And the Chinese powerhouse is bullish about 2026, as it aims to sell as many as 1.6 million units outside of China this year. And that is huge, considering that there is very little presence from BYD and other Chinese-branded vehicles in the US, one of the biggest auto markets in the world.

But if there is something that keeps Tesla in the game, it has to be its models’ desirability.

Surprisingly, in the Philippines, Tesla has moved over 2,000 BEVs a year after its launch in our market. This accounts for a commanding 54% share, making it the top BEV brand in the country today.

Will Tesla’s sales figures continue to skid? Can BYD sustain its global EV sales leadership this 2026? We’d love to find out.