A Chinese company is poised to steal Tesla's crown as the world's largest electric vehicle maker.

BYD is expected to surpass Tesla in battery-powered vehicle sales by the end of this year. Photo: BYD

Elon Musk's Tesla at the peak of its popularity was on the verge of losing its crown as the world's largest electric vehicle maker after Chinese giant BYD came within striking distance of its American rival.

BYD, whose Founder Wang Chuanfu vowed to «disrupt» established Western automakers, sold 431,603 electric vehicles. cars in the third quarter of the year, which is only 3,456 less than Tesla (435,059).

The Chinese company has embarked on a global push beyond its home country, selling its first cars in the UK and increasing sales in Europe. .

Massive government support and China's dominance in battery production mean the company has been able to undercut European and American companies that have been slow to switch to electric vehicles.

BYD's sales rose 23% from the second quarter, while Tesla's sales fell 7% as the impact of price cuts and subsidies from the Biden administration wore off.

The company's total sales, which include plug-in hybrids , surpassed Tesla last year. It is expected to surpass Mr. Musk's production of battery-only cars this year.

In a speech in August, Mr. Wang called on partner companies to «break old legends and create new world-class brands » and said that «the time has come for Chinese brands.»

BYD, which is backed by Warren Buffett and stands for “build your dream,” has historically targeted more cost-conscious consumers in China but has expanded overseas amid a slowing domestic economy. In March the company launched its first British car, the £36,490 Atto 3 SUV.

Last month, the European Union launched an investigation into Chinese government subsidies for electric vehicles, saying prices were being stagnated.” artificially low.» The investigation could mean import tariffs will be raised above the current 10% in an attempt to prevent «dumping.»

Tesla's third-quarter delivery figures released Monday were well below analysts' forecasts and marked the first quarterly figure. the drop was more than a year long.

The company blamed a slowdown in production at its factories during an overhaul of the Model 3, but said it was not changing its goal of producing 1.8 million vehicles this year. The company has repeatedly cut prices this year, especially in China, as it tries to maintain an edge over rivals.

Tesla on Monday introduced a cheaper version of its best-selling Model Y in the United States that costs $43,990. (£36,403), $3,750 off the previous cheapest model.

Chinese rival Nio also achieved record sales in the third quarter, selling 55,432 vehicles.