BYD Overtakes Tesla in Sales as Chinese EV Giant Expands.
Chinese electric vehicle (EV) manufacturer BYD has surpassed Tesla in annual revenue for 2024, marking a significant milestone in the global EV market. The Shenzhen-based company reported a 29% increase in revenue, reaching 777 billion yuan ($107bn; £83bn), outpacing Tesla's $97.7bn.
BYD's rapid growth has been fueled by strong sales of its hybrid vehicles, which have given it a competitive edge. While both companies sold nearly the same number of fully electric vehicles in 2024—1.76 million for BYD and 1.79 million for Tesla—BYD's inclusion of hybrid sales pushes its total global deliveries to a record-breaking 4.3 million units.
In a strategic move to further challenge Tesla, BYD has launched a new, more affordable EV model. The Qin L, unveiled on Sunday, starts at 119,800 yuan, significantly undercutting Tesla's Model 3, which is priced at 235,500 yuan in China. This aggressive pricing strategy comes as Chinese consumers tighten their spending due to economic concerns, including a property crisis, slowing growth, and mounting local government debt.
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Beyond affordability, BYD is making strides in technological advancements. Last week, its founder Wang Chuanfu introduced a groundbreaking battery charging technology capable of fully charging an EV in just five minutes—far faster than Tesla's supercharger system, which takes around 15 minutes. In February, BYD also announced that its "God's Eye" advanced driver-assistance technology would be available free of charge across all its models.
Shares in BYD, which is backed by veteran US investor Warren Buffett, have surged by more than 50% this year, reflecting investor confidence in the company's expansion and innovation.
Meanwhile, Tesla is facing increasing scrutiny and political challenges. A backlash against CEO Elon Musk has intensified following his appointment as head of the Trump administration's Department for Government Efficiency (DOGE), which is focused on reducing federal spending. Musk has also made headlines for his political interventions abroad, including endorsing Germany's far-right Alternative für Deutschland party and criticizing UK Prime Minister Keir Starmer.
At the same time, Chinese EV manufacturers, including BYD, have encountered trade restrictions in several Western markets, with the US and the European Union imposing tariffs on Chinese-made electric cars.
Despite these challenges, BYD's impressive growth trajectory, commitment to innovation, and competitive pricing strategy position it as a dominant force in the EV industry. With its expanding global footprint and cutting-edge technology, the company is well on its way to reshaping the future of electric mobility while driving increased competition and affordability in the sector.
