Over a decade ago, a confident Elon Musk laughed dismissively when asked if Chinese automaker BYD could become a serious competitor to Tesla in the electric vehicle (EV) market.
"Have you seen their car?" Musk responded with a burst of laughter during the 2011 Bloomberg interview.
He added, "I don't think they have a great product. I don't think it's particularly attractive. The technology is not very strong. And BYD as a company has pretty severe problems in their home turf in China. So I think their focus is, and rightly should be, on making sure they don't die in China."
At the time, Tesla was emerging as a high-end luxury electric vehicle manufacturer with ambitious plans, while BYD focused on affordable vehicles, plug-in hybrids, and batteries -- areas Musk saw as technically inferior and locally constrained.
Fast-forward to 2025, and the tables have turned dramatically. China's BYD overtook Tesla as the world's largest electric car maker.
That was many years ago. Their cars are highly competitive these days.
— Elon Musk (@elonmusk) May 27, 2023
According to a recent industry report, BYD sold 2.26 million battery electric cars during the year, easily outstripping the 1.63 million deliveries by Tesla for the same period, down about 9 per cent from 2024 – marking its second year in a row of annual decline.
This switch is symbolic of China's growing dominance in the EV sector, where car manufacturers have used the transition to electric cars to try to dominate the global automotive industry.
In May 2023, when the old 2011 interview clip resurfaced on social media, Musk responded to it on X, "That was many years ago. Their cars are highly competitive these days."
Why Tesla's Sales Declined In 2025
Tesla losing its crown as the world's bestselling electric vehicle maker is a stunning reversal for a car company whose rise once seemed unstoppable as it overtook traditional automakers with far more resources and helped make Musk the world's richest man.
Tesla's drop stems from multiple challenges:
- Global competition, particularly from Chinese rivals like BYD, which offer a broader range of affordable models, including hybrids, and have expanded in markets such as Europe.
- The expiration of US federal EV tax credits, up to $7,500 per vehicle, which ended in late 2025 and reduced affordability for many buyers.
- Brand backlash tied to Elon Musk's political involvement, including his role in the Trump administration's Department of Government Efficiency (DOGE) initiative early in the year and support for right-wing causes, which alienated some EV-friendly customers, who often lean progressive.
These factors contributed to protests, boycotts, and declining demand in key regions. The sales drop came despite US President Donald Trump's marketing effort early last year when he called a press conference to praise Musk as a "patriot" in front of Teslas lined up on the White House driveway, then announced he would be buying one, bucking presidential precedent to not endorse private company products.
(With inputs from AP)
