Investing.com -- BYD Co. reported Friday that its fourth-quarter net income fell 38% to 9.3 billion yuan ($1.3 billion) in the three months ended December 31, missing analyst expectations of 10.5 billion yuan.

The Chinese electric vehicle maker's revenue declined approximately 14% to 237.7 billion yuan during the quarter, according to figures derived from annual results.

The company's gross margin dropped to 17.7% in 2025, down from 19.4% the previous year, marking a three-year low for the metric.

Despite domestic sales challenges, the company's exports have remained stable in 2026. BYD is targeting sales of 1.3 million vehicles outside China this year.

BYD overtook Tesla Inc. (NASDAQ: TSLA) as the world's top-selling EV maker last year through aggressive discounting and a diversified product strategy.