Chinese electric vehicle (EV) giant BYD has surpassed Tesla in revenue, reporting an impressive 777 billion yuan ($107 billion; £83 billion) for 2024. This marks a 29% increase from the previous year and outpaces Tesla’s $97.7 billion revenue. The Shenzhen-based automaker’s success has been driven primarily by strong sales of its hybrid vehicles, in addition to its electric offerings.
BYD’s Competitive Edge
BYD sold 1.76 million EVs in 2024, closely matching Tesla’s 1.79 million. However, when factoring in hybrid sales, BYD’s total vehicle sales soared to a record-breaking 4.3 million globally. The company continues to expand its dominance by launching cost-effective models to rival Tesla’s offerings.
On Sunday, BYD introduced the Qin L model, which starts at 119,800 yuan ($16,500). This significantly undercuts Tesla’s Model 3, priced at 235,500 yuan ($32,500). The lower price point is expected to attract budget-conscious consumers in China, where economic uncertainty has led to cautious spending.
Technological Advancements
Beyond affordability, BYD is pushing technological innovation to gain an edge over Tesla. Last week, BYD’s founder Wang Chuanfu unveiled new battery charging technology capable of charging an EV in just five minutes, a major leap from Tesla’s 15-minute supercharger system.
Additionally, in February, BYD introduced its “God’s Eye” advanced driver-assistance technology, making it free for all models. This move contrasts with Tesla’s paid self-driving packages, positioning BYD as a leader in cost-effective automation solutions.
Global Challenges and Market Dynamics
Despite its success, BYD faces challenges as Western countries impose tariffs on Chinese EV manufacturers. Both the US and European Union have targeted China’s automotive sector with trade barriers, complicating BYD’s global expansion.
Meanwhile, Tesla is dealing with growing backlash against CEO Elon Musk. His ties to former US President Donald Trump, including his appointment as head of the Department for Government Efficiency (DOGE), have sparked controversy. Musk’s endorsement of far-right political parties and criticisms of international leaders have also stirred political tension, potentially affecting Tesla’s brand image.
Market Outlook
Backed by legendary investor Warren Buffett, BYD’s stock has surged by over 50% this year. As the company continues to innovate and expand, it is set to remain a dominant force in the EV industry. With Tesla facing political scrutiny and pricing challenges, BYD’s momentum shows no signs of slowing down.
