Move Over, TeslaChina’s electric vehicles supremacy can’t be...

	Move Over, Tesla

China’s electric vehiclessupremacy can’t be stopped.

The Chinese carmaker BYD ispoised to overtakeTesla as the world’s biggest seller of electric cars. The company sold around 431,600 fully-electric vehicles in last three months, just about 3,500 less than the number of carsTeslashipped. Elon Musk’s car business missed estimates.

Including hybrids, the Shenzhen-based firm sold more than 820,000 automobiles, a record quarter that helped cement it as China’s best-selling car brand.

It’s also getting a lift from growing exports: The company makes its own batteries and semiconductor chips, and is eyeing a larger chunk of overseas sales to supplement its dominance in China.

Exports accounted for 9% of BYD’s third-quarter sales, up from 5% the previous quarter, according to Bloomberg Intelligence analyst Joanne Chen.

“This will be a key volume driver next year as BYD expands its global presence with more new EVs,” she said.

BYD’s success is the latest show of force for China when it comes to EVs.

A BYD Seal electric sedan in Munich, Germany.Photographer: Krisztian Bocsi/Bloomberg

Beijing has pointed to its EV competitiveness as being a result of its supply chain advantages, including its robust battery production abilities. But carmakers in the world’s second-largest economy also benefit from aslew of incentives Beijing has created to boost sales and help the industry. That includes tax breaks for drivers that make the cars more affordable and subsidies for each company based on how many electric cars they make.

That’s also what has gotten these firms into trouble with Western governments including the European Union, which last monthlaunchedan anti-subsidy probe into China’s EV market. Brussels is pushing back against a flood of Chinese electric cars that officials worry are threatening the viability of its own car industry.

The EUformally kicked off its investigation this week, setting in motion a one-year investigation that could see provisional measures such as countervailing duties imposed in the next nine months.