Annual delivery data to 31 December 2025 places BYD ahead of Tesla in battery-electric volumes, sharpening focus on scale, supply-chain control and overseas plants, while Tesla’s strategy pivots towards robotaxis, AI and humanoid robotics.
New full-year delivery disclosures tighten the competitive picture in electric vehicles, and Merifund Capital Management Pte. Ltd. is spotlighting a clear change in leadership as BYD reports 2.26 million battery-electric deliveries against Tesla’s 1.64 million.
Set against the preceding comparable period, Tesla deliveries contract 8.6%, while BYD’s battery-electric volume expands 28%. Across its broader automotive footprint, BYD reports 4.55 million vehicle sales, alongside plug-in hybrid volumes of 2.29 million, down 8% on the prior year.
For institutional investors tracking the energy transition, the significance sits in how the lead is built. Scale manufacturing, supply-chain control and disciplined cost curves are becoming as important as early-mover branding, particularly as price-sensitive buyers take a larger share of demand across major regions.
Tesla’s softer trend is most visible in the final quarter of the reporting period, when deliveries slip 15.61% compared with the same quarter a year earlier to 418,227. The end of the $7,500 US federal tax credit at the start of this month adds pressure to pricing, with competitive alternatives multiplying across the mid-market segment.
Governance scrutiny is also sharpening. A coalition of pension investors representing 7.9 million Tesla shares is now pressing for a minimum 40-hour commitment each week from Elon Musk, arguing that operational focus, brand perception and share-price volatility are increasingly intertwined.
Tesla is simultaneously reframing its forward narrative around autonomy and physical artificial intelligence. Robotaxi trials in Austin currently run with a pilot fleet of around 25 to 30 vehicles and retain in-car safety monitors, while hiring activity points to expansion across multiple US cities over the coming year. Optimus, the humanoid robot programme, remains prominent in factory planning, even as rare-earth magnet supply constraints influence deployment pace.
BYD is taking a more industrial route to expansion, backed by integrated production and a broad line-up across price points. Overseas volumes now exceed one million vehicles on the latest full-year reading, up 150% on the prior year, as the group broadens manufacturing in locations including Thailand, Turkey and Hungary to reduce shipping costs and policy risk. Merifund Capital Management notes that current supply-chain mapping suggests BYD produces roughly 65% of direct materials internally. For Anthony Saunders, Director of Private Equity at Merifund Capital Management, “BYD’s manufacturing diversification strategy positions the company effectively against trade policy uncertainties” while “maintaining cost competitiveness through technological advantages in battery production” is now central to its international push.
Cost and pricing signals reinforce that assessment. Industry estimates currently put BYD’s Blade battery manufacturing costs about $11.6 per kilowatt-hour below Tesla’s 4680 approach. As of this month’s published UK list prices, a Tesla Model 3 rear-wheel drive is listed at about $53,586.6, while a BYD Seal is around $61,640 for comparable positioning. In Australia, current market pricing places the Seal about 22% below the Model 3, strengthening BYD’s ability to compete for volume without relying on subsidies.
Policy settings are splitting the market into distinct regional battlegrounds. In the United States, the removal of the $7,500 consumer credit is reshaping demand and pushing manufacturers to route incentives through leases, with some projections pointing to EV penetration easing towards 5% of total vehicle sales over the next year. China remains driven by consumer preference, with the electric share of new-car sales staying close to half on the latest full-year data, and surveys released over the past year indicating that more than 80% of buyers expect their next purchase to be electric.
Taken together, BYD’s delivery lead and Tesla’s technology pivot underline a sector where manufacturing discipline and software ambition are both being priced by investors. Merifund Capital Management continues to track how supply-chain control, regional production and pricing translate into resilience, and Saunders describes “operational discipline and repeatable execution” as the attributes most likely to define leadership as competition intensifies.
Merifund Capital Management Pte. Ltd. (UEN: 201024554E) is a Singapore-headquartered hedge fund manager established in 2010. The firm manages long-only portfolio mandates and also runs long/short equity, global macro, event-driven and systematic strategies. Derivatives are used selectively to broaden opportunity sets, while the investment process maintains a consistent emphasis on capital preservation, liquidity and prudent risk management. ESG considerations are integrated within the firm’s approach in alignment with rigorous global sustainability standards. Merifund serves accredited investors, family offices, foundations and endowments, and is expanding its offering to include retail investors. Further insights are available at https://merifund.com/insights. For media enquiries or additional information, contact Tao Yang at media@merifund.com or visit https://merifund.com.