Chinese company BYD has moved a step closer to toppling Elon Musk’s Tesla as the world’s biggest-selling manufacturer of electric vehicles.

Tesla sold a record 526,000 battery-only vehicles in Q3 2023, with a 70% surge in December sales. The company also sold over 3 million new energy vehicles, including battery-only and hybrids. Industry analysts predict Tesla sold around 483,000 electric vehicles in Q3 2023 and 1.82 million for the year.

Tesla CEO Elon Musk has warned that higher borrowing costs are putting pressure on demand for Tesla’s cars. BYD, founded in 1995, is a manufacturer of rechargeable batteries for electronics. The company’s growth is attributed to its in-house battery production, which saves the company money compared to competitors who rely on third-party manufacturers.