Chinese electric carmaker BYD Co. Ltd. (1211.HK; 002594.SZ), whose name stands for “Build Your Dreams,” may have just achieved one such vision: overtaking Elon Musk’s Tesla (TSLA.US) as the world’s biggest seller of electric vehicles (EVs). But that vision may be coming at a cost, quite literally, as BYD’s dream puts its profitability on a dangerously downward trajectory that sometimes comes with such aggressive expansion.
The Shenzhen-based company basked in the global spotlight earlier this month when it revealed that it sold 2.26 million EVs globally in 2025, driven by 145% year-on-year growth abroad. By comparison, Tesla’s battery-powered car deliveries fell 8.6% to 1.6 million last year, the largest annual drop in its history.