BYD Overtakes Tesla in Revenue as EV Sales Surge

BYD has achieved remarkable sales growth, generating more revenue than Tesla in the third quarter of 2024, as the race for electric vehicle supremacy intensifies.

Chinese electric vehicle giant BYD has reported a record surge in sales, placing it on the brink of overtaking Tesla as the leading EV manufacturer globally. In December alone, BYD sold 207,734 electric vehicles (EVs), bringing its total annual sales to an impressive 1.76 million. The company's growth can be attributed to favorable government subsidies, discounts, and the heightened demand for hybrid models.

While Tesla is poised to release its quarterly sales figures, BYD's continued expansion seems to have narrowed the previous gap substantially. In the fourth quarter of 2024, BYD's total vehicle sales had increased by 41%, driven predominantly by its hybrid offerings. The competitive environment in its home market has also led to a decline in prices, fostering increased consumer interest in replacing older vehicles with more efficient electric options.

In China, BYD continues to dominate the local market, selling around 90% of its cars in the region, where it is emerging as a powerful competitor against foreign brands like Volkswagen and Toyota. This surge of Chinese EV manufacturers poses significant challenges for traditional carmakers, many of whom are struggling to maintain their positions in vital Western markets.

Amidst these challenges, Honda and Nissan confirmed discussions about a merger, hoping to fortify their market presence against fast-rising Chinese competitors. Moreover, Volkswagen has announced agreements to stave off plant closures in Germany, while Stellantis experienced boardroom upheaval with the sudden resignation of its CEO, Carlos Tavares.

Notably, BYD outperformed Tesla in terms of revenue for the first time in the third quarter of 2024, achieving over 200 billion yuan (approximately $28.2 billion), a 24% year-on-year growth. In comparison, Tesla reported quarterly revenues of $25.2 billion. However, despite this revenue edge, Tesla maintained higher overall EV sales than BYD.

Chinese manufacturers are keen to expand their reach beyond domestic borders, yet they encounter obstacles in crucial international markets. The European Union has implemented tariffs of up to 45.3% on imports of Chinese EVs, while the United States has levied a steep 100% duty on Chinese electric vehicles, alongside potential further tariffs expected under the incoming administration of President-elect Donald Trump.

BYD's recent endeavors to bolster its presence in emerging markets, particularly Brazil, faced setbacks due to serious allegations regarding labor conditions at a construction site for its factory, prompting the company to sever ties with the involved firm while asserting its commitment to local laws.