Chinese automaker BYD has firmly established itself as a dominant force in the electric vehicle (EV) industry, overtaking Tesla in revenue for the first time in 2024. The Shenzhen-based company reported a staggering 777.1 billion yuan ($107.2 billion) in revenue, a 29% increase from the previous year, outpacing Tesla’s $97.7 billion. This marks a major milestone for BYD as it accelerates its global expansion, particularly in Europe while continuing to dominate the world’s largest EV market—China.
The company’s net profit for 2024 also reached an all-time high, climbing 34% to 40.3 billion yuan. These impressive financial results underscore BYD’s rapid ascent, fueled by a combination of cutting-edge technology, aggressive market expansion, and strong government support. The company’s success is further highlighted by its surging vehicle sales. In 2024, BYD delivered nearly 4.3 million cars, up more than 40% from the previous year, far surpassing Tesla’s total deliveries, which stood at 1.79 million purely electric vehicles. When factoring in BYD’s hybrid models, its dominance becomes even clearer, with total deliveries rivaling that of legacy automakers like Ford.
A Game-Changer in EV Technology
One of BYD’s biggest breakthroughs has been in battery technology. The company recently unveiled its “Super e-Platform” battery and charging system, which boasts charging speeds of 1,000 kilowatts—double that of Tesla’s Superchargers. This innovation allows a vehicle to gain up to 470 kilometers (292 miles) of range in just five minutes, making it a game-changer in the industry. Such advancements have propelled BYD’s stock to new heights, with its Hong Kong-listed shares reaching record valuations as investors recognize the company’s technological prowess.
Meanwhile, Tesla has faced declining sales in key regions, particularly in China, where BYD continues to expand its market share. For the past five consecutive months, Tesla’s shipments in China have been falling, whereas BYD now commands nearly 15% of the country’s overall passenger vehicle market—not just new energy vehicles but all cars.
Global Expansion and Market Challenges
BYD is not just dominating China; it’s making aggressive moves into international markets. The company has set its sights on Europe, launching extensive marketing campaigns, including sponsorships of major sporting events. With the release of compact EV models tailored for European buyers and a network of new showrooms across the continent, BYD is aiming to capitalize on Tesla’s recent struggles in the region.
However, this global push is not without obstacles. Trade tensions between China and the West pose a potential risk to BYD’s ambitions. The European Union has launched an investigation into whether BYD’s first European factory in Hungary received unfair subsidies from Beijing. Similarly, U.S. trade policies have made it nearly impossible for the company to enter the American passenger car market, with tariffs on Chinese-made vehicles acting as a significant barrier.
Despite these challenges, BYD remains steadfast in its strategy. The company’s chairman, Wang Chuanfu, emphasized that Chinese automakers are no longer merely following trends but are now leading innovation in the era of intelligent vehicles. He reiterated BYD’s commitment to continued research and development, further strengthening its competitive edge on the global stage.
Tesla’s Struggles Amid BYD’s Rise
While BYD is on the rise, Tesla is navigating a turbulent period. The American automaker’s profitability has been under pressure, with its annual car volume growth streak coming to an end in 2024. Despite a market capitalization still towering over BYD—$800 billion compared to BYD’s $157 billion—Tesla has seen its stock price decline by 38% this year. CEO Elon Musk’s involvement in political controversies and shifting priorities has also contributed to investor uncertainty.
Tesla’s net income in 2024 stood at $7.6 billion, highlighting its continued profitability, but the competitive landscape has shifted dramatically. With BYD’s aggressive pricing, technological innovations, and government backing, Tesla faces a formidable rival that is rapidly gaining ground not just in China but globally.
The Road Ahead
Looking forward, BYD has set ambitious targets, forecasting sales of between 5 million to 6 million vehicles in 2025. The company has already posted a strong start to the year, with sales in the first two months of 2025 jumping 93% year-over-year to 623,300 units. If this momentum continues, BYD is well on track to further cement its dominance in the EV market.
While Tesla still maintains an edge in brand recognition and premium EV market positioning, BYD’s strategy of affordability, innovation, and global expansion positions it as a serious contender for long-term industry leadership. With its rapid technological advancements and increasing market penetration, BYD’s ascent signals a fundamental shift in the balance of power in the EV industry.
