Should Tesla be Worried About BYD?

(NASDAQ: TSLA) has been a pioneer in the electric vehicle (EV) market. Though it wasn't the first to make one, it helped them become far more mainstream than they were before. Tesla remains a leader in this niche. However, the company faces increasing competition, including from (OTC: BYDDY), a China-based EV maker. When looking at both companies' performances on equity markets over the past year -- with Tesla gaining 32% and BYD dropping 29% -- the former seems to be doing just fine, while its Chinese counterpart is struggling. But there is more to the story, much more. Here's why Tesla might be worried about BYD.

Image source: The Motley Fool.

Last year, Tesla made 1.65 million EVs, with total deliveries landing in the neighborhood of 1.64 million. The company's two main models, the 3 and the Y, accounted for the overwhelming majority of deliveries. Others include the Model X and S -- which Tesla announced earlier this year that it was discontinuing -- as well as its Cybertruck. Tesla is working on releasing a newer version of its Roadster, a sports car that was the first Tesla ever launched. The company's lineup also features a semitruck. Tesla's deliveries fell by 9% year over year in 2025, partly due to growing competition and the U.S. EV tax credits expiring in September.

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Source Fool.com