In the annual sales stakes, BYD said on Thursday that sales of its battery-powered vehicles jumped nearly 28 per cent to more than 2.5million. 

Tesla is due to post its 2025 annual sales figures later on Friday. Last week, analyst estimates claimed the US-based business is likely to have sold approximately 1.65million EV cars in 2025. 

Ferocious competition from Chinese rivals, a degree of unease among some of Tesla chief Elon Musk's politics and mixed reviews of new models piled pressure on the American giant last year. 

Chinese EV makers like BYD, Geely and MG are snapping at the heels of Western rivals and luring in customers with lower prices.  

Dan Coatsworth, head of markets at AJ Bell, told the Daily Mail: 'Tesla had the first mover advantage with electric vehicles, but its moment in the sun has long gone.

'Price is incredibly important to drivers and BYD has muscled its way to the top by undercutting its American rival.'

He added: 'While Tesla might argue it has the edge on battery range and technology, many people are happy for a more standard offering as they embrace electric power.

'BYD is far from a no-frills offering though, as it competes well on features as well as price.

'Tesla is fighting back with more affordable vehicles, but the outspoken nature and political views of CEO Elon Musk means the brand is off limits to many drivers, no matter the price point.'

In a bid to fend off Chinese rivals, Tesla launched lower-priced versions of its two best-selling models in October. 

Aside from Tesla, Musk's business interests also include social media platform X, rocket firm SpaceX and the Boring Company, which digs tunnels.

This slew of commitments, along with running Trump's Department of Government Efficiency (Doge), led some investors to allege Musk was not paying Tesla enough attention. 

Later in 2025, Musk vowed to cut back his government work.