Tesla rivals BYD, Nio Li Auto, XPeng and Zeekr all reported record December sales. But a price war is intensifying.

China’s BYD Co. enjoyed a year-end surge to push total sales to 4.25 million passenger cars last year, narrowing its gap with Tesla Inc. as the two vie for the crown of top-selling electric-vehicle maker of 2024.

The EV giant sold 1.76 million electric cars in 2024, per figures released on Wednesday, putting it within touching distance of beating Tesla.

Though China EV sales are growing, analysts warn of race to bottom. Tesla-BYD discount wars reignited and threaten smaller players.