WSJ What’s News

Episode: China’s BYD Surpasses Tesla as the Top Global EV Seller

Date: January 2, 2026
Host: Luke Vargas (with reporting from Jim Fenelli and Gunjan Banerjee)

Episode Overview

This episode spotlights three major stories shaping global business and politics:

• China’s BYD surpassing Tesla as the world’s top EV seller
• Escalating protests and U.S. policy options in Iran
• The challenges facing New York City’s new mayor, Zoran Mamdani

The show also touches upon shifting U.S. trade policy, Department of Justice enforcement priorities, and notable developments affecting global markets. Reporting is brisk and direct, with context from Wall Street Journal journalists.

Main Topics and Key Insights

1. China’s BYD Tops Global EV Market

(Begins [00:55])

• BYD's new status:
  BYD sold over 2.25 million battery electric vehicles last year, marking a 28% increase.
• Tesla’s decline:
  Tesla's annual EV sales fell 9% to 1.64 million – its second consecutive yearly drop.
• Why Tesla stumbled:
  • U.S. federal subsidies for EVs ended
  • Demand in Europe weakened
  • Pivot toward automation (e.g., the Robotaxi cybecab "which doesn't have a steering wheel")
• Competitive landscape:
  Other U.S. automakers are reconsidering their own EV strategies, while BYD faces mounting competition from domestic rivals like Geely and Leap Motor.

Notable Quote:
"China's BYD says it sold over two and a quarter million battery electric vehicles last year, a 28% annual jump, while Tesla sales dropped 9%, its second consecutive annual slide to 1.64 million cars."
— Luke Vargas [00:55]

2. AI Surge and Trade Policy Updates

(Begins [01:51])

• Markets start strong:
  Stocks rally as AI (especially Nvidia, Intel, and Micron) powers up global markets.
• Furniture retailers up:
  Wayfair and Williams Sonoma climb after a Trump administration delay of tariff increases, which had been set for New Year’s Day.
• Italian pasta duties:
  The U.S. walks back a threatened 92% tariff on Italian pasta, settling for revised rates up to 13.9% after Italian government lobbying.

3. White House: Military Deployments and DOJ Priorities

(Begins [02:40])

• National Guard withdrawal:
  Plans to pull troops from LA, Chicago, and Portland after a Supreme Court defeat.
• Justice Department shift:
  DOJ pivots away from prosecuting foreign bribery; in 2025, only six new cases brought, versus the usual 33.
  • Focus is now on tariff-dodging and "protection payments to drug gangs."

Notable Quote:
"The Trump administration has very intentionally tried to shift toward enforcement that really fits the president's priorities. They are now trying to... bring cases against businesses accused of dodging or underpaying tariffs..."
— Gunjan Banerjee [03:32]

4. Iran Protests: U.S. Threatens Intervention

(Begins [05:29])

• Escalating violence:
  Demonstrations in Iran have turned deadly, with police crackdowns.
• U.S. response:
  Trump warns Iran against violence and signals possible intervention (no details provided).
• Wider context:
  The root cause is economic hardship from international sanctions.

Notable Quote:
"The biggest issue for the regime is the sanctions that are basically derailing its economy and threatening its political stability, and are set to continue unless it takes a very drastic turn..."
— Jim Fenelli quoting Benoit Foucault [06:04]

5. President Trump Faces Health Scrutiny

(Begins [06:25])

• Trump admits regrets over an October CT scan, says bruising is from too much aspirin, and denies rumors of hearing loss or falling asleep.
• He emphasizes his ability to function with little sleep.

6. Zoran Mamdani Inaugurated as NYC Mayor: Big Promises, Tough Road

(Begins [07:01])

• Vision:
  Mamdani, hailed as a democratic socialist, pledges to make NYC more affordable — freezing rents, universal free childcare (ages 0–5), and free city buses.
• Fiscal challenges:
  Childcare would cost $6 billion/year; free buses nearly $800 million/year.
  • Funding plans: Raise taxes on the wealthy and corporations, but faces resistance from state lawmakers and the governor.
• Managing the bureaucracy:
  Mamdani must quickly master the city’s vast operations (300,000 workers, essential services).

Notable Quote:
"We will replace the frigidity of rugged individualism with the warmth of collectivism... If our campaign demonstrated that the people of New York yearn for solidarity, then let this government foster it."
— Zoran Mamdani [07:01]

Notable Quote:
"There's a lot to do beyond just him wanting to enact some of his big policies. He just has to keep the city humming as he does that."
— Jim Fenelli [07:43]

• Relations with Washington:
  Mamdani had a "congenial" meeting with Trump despite prior vows to oppose federal immigration actions; possible flashpoints ahead.

Timeline of Notable Segments

• [00:55] — BYD overtakes Tesla as top EV maker
• [03:32] — DOJ pivots away from foreign bribery cases (Gunjan Banerjee segment)
• [05:29] — Trump warns Iran against protest crackdowns
• [06:04] — Effect of U.S. sanctions on Iranian unrest
• [06:25] — President Trump addresses health rumors
• [07:01] — Mayor Mamdani’s inaugural address and agenda
• [07:43] — Challenges of running NYC
• [08:22] — Funding ambitious city programs
• [09:50] — NYC-Washington relations after Mamdani’s election

Summary & Takeaways

This brisk, content-rich episode tracks transformational headlines: BYD’s EV victory over Tesla reflects global power shifts; U.S. policy recalibrates on trade, law enforcement, and military deployments; Iran's unrest signals volatility; and New York City braces for a new, ambitious leadership era. Each topic is grounded in expert analysis and first-hand reporting, offering listeners a clear, engaging tour of today’s most influential business and political developments.