BYD has already proven it can scale. In 2026, the real test is whether it can turn that scale into durable profits.

BYD (OTC:BYDDY) has outperformed the market over the past 10 years by 9.65% on an annualized basis producing an average annual return of 23.23%. Currently, BYD has a market capitalization of $115.33 billion.

BYD is now the world’s top EV seller, but valuation, margins, and slowing growth suggest the crown comes with risks.

The UK is a small EV market in absolute global volume terms, with a few hundred thousand battery electric registrations a year against China’s millions. Even BYD’s sixfold surge in sales here last year and its rise to become the UK’s sixth biggest carmaker in December cannot explain why it delivered 620,000 more EVs globally than Tesla last year.

BYD Company Limited Q3 shows surging inventory, falling revenue, and debt spike—signs of channel stuffing. Click for this updated look at BYDDF stock.

BYD and Tesla are both facing increasing competition. BYD's latest earnings report showed a 32.6% decrease in profit year over year. BYD reduced its sales target for 2025 by 16%, but it still expects to double the amount of EV and hybrid cars it exports. BYD trades at a much more reasonable price than Tesla and is up 5.6% as of Dec. 17.

Tesla has slipped behind China's BYD as the world's top EV maker after posting a second straight year of declining sales.