merging markets. BYD’s growth has been driven by a broad lineup of lower-priced electric and plug-in hybrid vehicles, supported by strong domestic demand and aggressive overseas expansion. Tesla, long seen as the industry’s pace-setter, has faced slowing demand in key markets, including the United States and parts of Europe . Price cuts aimed at boosting sales have weighed on margins, while rising competition has eroded the company’s market share. Industry analysts say BYD’s vertically integrated model — including in-house battery production — has helped it control costs at a time when consumers are increasingly price-sensitive. In contrast, Tesla has struggled to maintain growth as government incentives fade and the global EV market matures. The shift also highlights China’s growing influence over the electric vehicle supply chain, from battery materials to manufacturing scale. Chinese automakers are increasingly challenging Western brands, not only on cost but also on technology and production speed. Despite the setback, Tesla remains one of the world’s most valuable carmakers and continues to invest heavily in autonomous driving, software and next-generation vehicle platforms. The company has signaled that long-term growth will depend on innovation rather than volume alone. For the broader industry, the changing rankings underscore a transition from early-stage expansion to a more competitive and price-driven market, where scale, efficiency and global reach are becoming decisive factors. As automakers race to capture the next phase of EV growth, the battle for leadership is expected to intensify, reshaping the balance of power in the global auto industry.