BYD, Tesla's Chinese rival, reported a 60% increase in sales in the first three months of 2025.
In contrast, Tesla announced its worst quarterly sales since 2022.
BYD's success is driven by surging sales both in China and internationally, while Tesla is facing challenges in Europe and protests against CEO Elon Musk.
BYD is also undercutting Tesla on price and overtaking it on innovation, causing Tesla's stock price to falter.