Investing.com -- BYD Co. is positioned to reclaim its spot as the world's largest seller of fully electric vehicles from Tesla Inc. as the Chinese automaker increases its international shipments.

BYD delivered 557,090 battery-electric vehicles in Q2, according to figures released Wednesday. Tesla is expected to report quarterly sales of approximately 396,500 vehicles next week.

BYD first surpassed Tesla in the fourth quarter of 2024 and maintained its lead through 2025. Tesla regained the top position in the first quarter of 2026, outselling BYD by around 48,000 vehicles as demand in China weakened.

BYD's total sales across all drivetrains and vehicle types increased 5.5% in June to 403,472 units. Overseas markets accounted for 43% of units sold, demonstrating the company's expanding global presence.

The Chinese automaker is concentrating on technology improvements to compete with rivals including Geely Automobile Holdings Ltd. and Xiaomi Corp. as China's auto market faces intense price competition.

In late May, BYD announced several technological developments, including what it described as China's most powerful chip for self-driving cars. The company is also expanding production of its next-generation blade batteries.

Tesla has started hiring for driver-assistance positions in China following multiple delays in launching technology considered crucial for competing with local manufacturers.

Global electric vehicle sales are heading toward another record year, though growth in major markets is decelerating. In China, sales of new energy vehicles, which include EVs and plug-in hybrids, dropped 7.5% in May compared to the previous year, according to the China Passenger Car Association.