• BYD global sales jumps 56% in the first two months of this year, potentially putting it in arms reach of EV leader Tesla. CEO Elon Musk shut down his four assembly plants that build the Model Y ahead of

Tesla CEO Elon Musk better watch his rearview mirror—China’s BYD is catching up fast. 

On Monday, its arch-rival posted soaring sales figures for the first two months of this year, giving investors for the first time an accurate look at the health of its demand. 

Due to the varying dates of the country’s Lunar New Year festivities, during which car sales take a sizable hit as Chinese return home for the holidays, monthly sales can be heavily distorted.

This year, it fell in January, whereas last year, it occurred in February, each time depressing volumes.

According to a regulatory filing to the Hong Kong Stock Exchange on Sunday, BYD said aggregate sales of EVs, also known as battery electric vehicles, like the BYD Seagull, jumped 56% in the two-month period to 250,000 vehicles.

In February 2025, we achieved a total monthly sales of 322,846 New Energy Vehicles.

Let's keep pushing forward for a more sustainable future!#BYD #BuildYourDreams pic.twitter.com/cqkCt7SB7W

— BYD Global (@BYDGlobal) March 1, 2025

“Let’s keep pushing forward for a more sustainable future,” the company wrote, celebrating its strong performance.

Tesla hampered by loss of Model Y volumes ahead of refresh

It’s now in potential arm’s reach of industry leader Tesla. Since Musk’s carmaker only publishes once a quarter, investors won’t likely know for certain until April 2nd. 

But it’s entirely possible BYD could catch up to it, given Tesla’s partial loss of Model Y volumes. The crossover is absolutely crucial for Musk: not only did it narrowly retain its title as the best-selling car in the world of any kind last year, it counts for nearly two-thirds of all new Teslas sold worldwide.

Tesla bulls who follow the company closely have been warning recently that volume could even drop well below 400,000 for the first quarter due in part to the simultaneous shutdown of all four Model Y assembly lines worldwide for retooling in advance of the start of production of a refreshed version.

To ensure the Y remains competitive in the market, Musk just gave the five-year-old vehicle new exterior styling cues that differentiate it more from its sedan sibling, the Model 3. Deliveries began late last week, according to Tesla’s own account on China’s version of Twitter, called Weibo. 

BYD sales nearly doubled when including plug-in hybrids

Fortunately for Tesla, its brand has seen none of the damage in China that it has suffered in the West due to its polarising CEO, who just celebrated the birth of his reportedly 14th child from four different women. 

Comedian Mike Myers returned to “Saturday Night Live” this weekend to lampoon Musk’s moments as Trump supporter. Its treatment of the entrepreneur marks a precipitous call—the show that once invited him to guest host at the peak of his popularity.

Humor fails when it lies

— Elon Musk (@elonmusk) March 2, 2025

Whether or not BYD can catch up to Tesla this quarter, it will certainly outsell the brand once its plug-in hybrid (PHEVs) range is included. While these vehicles have a combustion engine, they can drive on their battery alone for short trips like the daily commute.

Despite criticism from EV supporters, their popularity has grown with BYD’s sales of PHEVs more than doubling.

Between the two powertrain technologies, total passenger cars delivered in both January and February rose 90% to 614,000, according to the company. Of that number, nearly 133,400 were sold outside China.

This story was originally featured on Fortune.com