BYD Overtakes Tesla, Kia EV3 USA Launch, NEVI Funding Battle

Introduction

The first days of 2026 bring historic news for the electric vehicle industry: BYD has officially overtaken Tesla as the world's largest EV manufacturer after final 2025 sales figures confirm the Chinese automaker sold 2.26 million battery-electric vehicles compared to Tesla's 1.64 million. Meanwhile, the Kia EV3 prepares for its U.S. launch with a compelling $35,000 starting price and over 300 miles of range. Federal EV charging infrastructure faces ongoing uncertainty as the NEVI funding battle between the Trump administration and states continues in court. On the local level, Hoboken, New Jersey demonstrates how cities can successfully partner with private operators for urban charging, while Leapmotor targets 1 million global sales in 2026 with European production beginning this year. At Shaffer Construction, Inc., we help Los Angeles property owners prepare for this rapidly evolving market through expert commercial EV charger installations and residential charging solutions. Here are the developments shaping the new year.

BYD Officially Becomes World's Largest EV Maker

BYD has officially overtaken Tesla as the world's largest manufacturer of all-electric vehicles for 2025, marking a historic shift in the global EV industry. The Chinese automaker sold 2.26 million battery-electric vehicles in 2025, up nearly 28 percent from 2024, while Tesla's deliveries fell 8.6 percent to 1.64 million units. This represents the first time BYD has surpassed Tesla in annual EV sales, with BYD outselling its American rival by over 600,000 vehicles. Source: CNBC.

BYD's success was driven by both domestic growth and international expansion, with overseas sales surpassing 1 million units for the first time, up 150 percent from the previous year. This international growth helped offset challenges in BYD's domestic Chinese market, where the price war we covered in our 2025 year-end review compressed margins across the industry. Tesla faced declining sales for a second consecutive year, with analysts citing increased competition and market saturation as contributing factors. Source: Electrek.

Despite the sales decline, Tesla maintains significant advantages in charging infrastructure and brand recognition, particularly in North America. As we reported yesterday, Tesla's Supercharger network delivered a record 6.7 TWh of electricity in 2025, and the company plans to begin production of its AI-powered Cybercab robotaxi in 2026. For Los Angeles property owners, the expanding diversity of EV manufacturers reinforces the importance of installing charging infrastructure that serves all vehicles regardless of brand.

Kia EV3 Prepares for U.S. Launch at $35,000

The Kia EV3 is expected to arrive in U.S. showrooms in early 2026, bringing a compelling combination of affordability and capability to the compact electric SUV segment. Kia is targeting a starting price of approximately $35,000, with two battery options: a 58.3-kilowatt-hour standard range pack and an 81.4-kilowatt-hour long range version targeting over 300 miles of EPA-rated range. Both versions use a front-mounted electric motor producing 201 horsepower and 209 pound-feet of torque. Source: Edmunds.

Reviews from European and Korean markets have been overwhelmingly positive, with The Drive calling it simply a well-made electric car for the masses and the first EV they have driven that crosses the line of being agreeably cheap, practical, and enjoyable. The interior features a 30-inch screen and 12-inch head-up display borrowed from Kia's larger EV9 flagship, along with heated and cooled fully reclining seats. After launching in late 2024, the EV3 quickly became one of the most popular EVs in Europe and South Korea, and the best-selling retail EV in the UK in the first half of 2025. Source: The Drive.

The EV3's arrival adds another strong option to the growing list of affordable EVs, joining vehicles like the Chevrolet Equinox EV and the upcoming Slate truck we covered in our New Year's Day roundup. More affordable EVs means more drivers seeking convenient home and workplace charging, creating opportunities for Los Angeles property owners to add value through charging infrastructure investments.

NEVI Funding Battle Continues Between States and Federal Government

The legal battle over federal EV charging infrastructure funding continues as states fight to recover billions in frozen NEVI program dollars. The Trump administration froze $5 billion earmarked for charging under the National Electric Vehicle Infrastructure Formula Program early in 2025, with the Federal Highway Administration informing states that their spending plans were being scrapped. A federal judge in Seattle struck down the freeze in June 2025, ordering the Transportation Department to release approximately $875 million to states that challenged the order. Source: Canary Media.

Despite the court victory, a significant portion of funding remains unavailable, with the District of Columbia and 20 states continuing their fight in court. The Transportation Department issued revised guidance in late 2025, stipulating that NEVI funding should prioritize installations at existing gas stations and truck stops. California Attorney General Rob Bonta has been particularly vocal in opposing what he calls the administration's illegal attempt to stop funding for EV charging infrastructure. More than 30 new charging projects have been eliminated nationwide since the freeze began. Source: California Attorney General.

The NEVI uncertainty underscores the importance of private investment and the June 30, 2026 federal charger tax credit deadline for property owners considering installations. While federal infrastructure funding faces political headwinds, the tax credit remains available for qualifying installations completed before the deadline. Shaffer Construction can help Los Angeles property owners navigate these incentives through comprehensive electrical load studies and installation planning.

Hoboken Partners with Jolt Charge for Urban On-Street Charging

Hoboken, New Jersey has partnered with Jolt Charge Inc. to operate and maintain its 14 on-street EV charging stations, demonstrating a successful model for municipal charging infrastructure. Under the new agreement, Jolt will operate the stations at no cost to the city while paying 54 percent more in monthly rent than the previous operator. Pricing is set at $0.35 per kilowatt-hour for Level 2 charging and $0.50 per kilowatt-hour for DC fast charging, both with a $1 connection fee. Source: City of Hoboken.

The 14 Jolt stations are part of Hoboken's larger municipally-owned network, which includes 28 Level 2 ports and eight DC fast charging ports. The increased revenue from the new agreement will be reinvested into essential municipal services, infrastructure improvements, and sustainability initiatives to advance the city's goals of achieving net-zero energy by 2030 and carbon neutrality by 2050. Jolt entered the U.S. market after acquiring Volta's network assets from Shell, bringing its charging technology and app-based management to American cities. Source: Hudson County View.

Hoboken's public-private partnership model offers lessons for Los Angeles property owners and municipalities. On-street charging serves residents who lack access to private parking, while revenue-sharing agreements ensure sustainable operations. For commercial and multi-family property owners in Los Angeles, installing charging infrastructure can similarly attract EV-driving tenants and customers while generating new revenue streams.

Leapmotor Targets 1 Million Global Sales in 2026 with European Production

Chinese EV manufacturer Leapmotor has set an ambitious target of 1 million global vehicle sales in 2026, with CEO Zhu Jiangming stating that 60 percent of sales should come from markets outside China. The company, which operates internationally through a partnership with Stellantis, delivered 596,555 vehicles in 2025, surpassing its annual target and emerging as one of the fastest-growing EV brands. Leapmotor has already established 600 sales and service points across Europe, exceeding initial projections of 500 by 2026. Source: Investing.com.

A key development for 2026 is the start of European production at a Stellantis facility in Spain, with 40 percent of parts by value to be procured locally. This localization strategy helps Leapmotor avoid EU tariffs on Chinese imports that have affected other manufacturers. The company's D19 SUV is scheduled for sale in the first half of 2026, anchoring a broader expansion that includes additional models for both China and Europe. Long-term, Leapmotor expects to sell more than 4 million vehicles annually within the next decade. Source: Mobility Portal EU.

While Leapmotor vehicles are not currently available in the United States, the company's rapid growth illustrates the global competition driving EV innovation. Stellantis, which owns Jeep, Ram, and Dodge brands available in the U.S., has announced plans to bring NACS-equipped vehicles to Tesla's Supercharger network in 2026. This interconnected global market means technology and pricing improvements developed anywhere benefit EV buyers everywhere.

What These Developments Mean for Los Angeles Property Owners

This week's news confirms the EV market's continued evolution despite near-term uncertainties. BYD's ascension to the top spot accelerates competitive pressure that drives better vehicles at lower prices, expanding the population of EV drivers who need charging access. The Kia EV3's expected $35,000 price point with 300-plus miles of range demonstrates how quickly affordable long-range EVs are reaching market.

The NEVI funding battle creates uncertainty for public charging infrastructure, but the federal charger tax credit deadline of June 30, 2026 remains the most actionable opportunity for property owners. Private investment in charging infrastructure becomes more valuable as federal programs face political challenges. Hoboken's successful partnership with Jolt Charge demonstrates how public-private models can deliver sustainable charging infrastructure without straining municipal budgets.

For Los Angeles property owners, the message remains consistent: EV adoption continues accelerating regardless of policy headwinds, and properties with charging infrastructure will be better positioned to serve the growing EV driver population. Acting before the June 30, 2026 tax credit deadline maximizes available incentives for both commercial and residential installations.

Conclusion

BYD's historic overtaking of Tesla as the world's largest EV maker marks a new chapter in the global automotive transition. The Kia EV3's imminent U.S. arrival brings another compelling affordable option to American buyers. While federal NEVI funding faces ongoing legal battles, the charger tax credit remains available for property owners who act before the June 30 deadline. Hoboken's partnership with Jolt Charge demonstrates successful municipal charging models, and Leapmotor's European production launch shows Chinese manufacturers adapting to global trade realities. For Los Angeles property owners, these developments reinforce that now is the time to invest in charging infrastructure while incentives remain available and before the EV driver population grows further.

Ready to explore EV charging options for your Los Angeles property? Contact Shaffer Construction, Inc. for a complimentary site assessment and expert guidance on selecting the right charging solution for your needs.

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