Why Tesla’s Chinese Rival BYD Faces Raft of Troubles

BYD Co. has spent the last five years racing ahead. In 2024, with the help of government support, aggressive pricing and overseas expansion, the Chinese carmaker surpassed Tesla Inc. to become the world’s top seller of electric vehicles.

Now, the company faces a reality check. Since authorities earlier this year stepped up scrutiny of the bruising price war in China that helped fuel BYD’s rise, the automaker’s sales momentum has stalled. What was expected to be another blockbuster year has instead become the company’s toughest stretch since 2020. In September, it lost its crown as China’s best-selling automaker to state-owned SAIC Motor Corp., and a month later posted its second straight quarterly decline in profit.