Chinese EV giant BYD saw 21% jump in quarterly sales, could overtake Tesla again

China’s BYD reported a 21% surge in second-quarter electric vehicle (EV) sales, narrowing the gap with Tesla (NASDAQ:) after losing the title of the world’s top EV vendor to the U.S. company in the first quarter.

BYD sold 426,039 EVs during the quarter from April to June, based on Reuters’ calculations from its monthly sales reports. This figure is approximately 12,000 vehicles fewer than Tesla’s estimated deliveries for the second quarter.

Tesla is anticipated to report a 6% decline in vehicle deliveries for the April-June quarter on Tuesday, Reuters said, marking the first time the U.S. company is expected to post two consecutive quarters of decline, as it faces intense competition in China and sluggish demand due to a lack of affordable new models.

If the actual results are weaker than estimated, Tesla could again lose its EV leadership to BYD, with Barclays forecasting an 11% drop in second-quarter deliveries, the largest decline in Tesla’s history.

Tesla’s China-made EV sales in June fell 24.2% year-on-year to 71,007 units, according to the China Passenger Car Association (CPCA), marking the third consecutive month of year-on-year decline.

Tesla shares fell nearly 2% ahead of Tuesday’s market open.