Chinese electric vehicle (EV) manufacturer BYD has overtaken Tesla in annual revenue for 2024, marking a significant milestone in the global EV market. The Shenzhen-based company reported a 29% revenue increase, reaching 777 billion yuan ($107 billion; £83 billion), surpassing Tesla’s reported $97.7 billion.
BYD’s Rapid Growth and Competitive Edge
BYD’s success is driven by strong sales of its hybrid vehicles, positioning it as a dominant player in both EV and hybrid markets. While BYD sold nearly the same number of EVs as Tesla in 2024—1.76 million compared to Tesla’s 1.79 million—its total vehicle sales, including hybrids, reached a record-breaking 4.3 million globally.
New Models and Technological Advancements
On Sunday, BYD unveiled the Qin L model, designed to compete directly with Tesla’s Model 3. The Qin L starts at 119,800 yuan in China, significantly lower than the base Tesla Model 3, which is priced at 235,500 yuan. This launch comes as Chinese consumers tighten their spending due to economic challenges, including a slowing economy, property sector instability, and high government debt.
BYD has also made major advancements in EV technology. Founder Wang Chuanfu recently introduced new battery charging technology capable of fully charging an EV in just five minutes, significantly faster than Tesla’s 15-minute supercharging system. Additionally, BYD’s “God’s Eye” advanced driver-assistance technology, introduced in February, is now included for free in all its models.
Market Reaction and Global Challenges
Shares of BYD, which is backed by U.S. investor Warren Buffett, have surged by over 50% this year. Meanwhile, Tesla faces mounting challenges, including a backlash over Elon Musk’s political affiliations. His appointment as head of the Trump administration’s Department for Government Efficiency (DOGE) has sparked controversy, and his endorsements of far-right political parties abroad have added to Tesla’s public relations struggles.
At the same time, Chinese EV manufacturers, including BYD, face increasing global trade barriers. The U.S. and the European Union have imposed tariffs on Chinese-made EVs, complicating expansion efforts in Western markets.
With its aggressive pricing strategy, technological innovations, and growing market share, BYD is poised to strengthen its position as a leader in the global EV industry.
