S Poddar
Chinese electric car maker BYD has made a huge splash by overtaking Tesla in annual revenue for 2024. The Shenzhen-based company posted a staggering 29% rise in revenue to 777 billion yuan ($107 billion; £83 billion). This was mainly driven by the strong sales of its hybrid cars, making BYD top Tesla, which posted $97.7 billion in revenue for the same time.
BYD’s stellar performance is also brought into focus with the introduction of its new model, which directly targets Tesla’s top-selling Model 3. The new car will compete against Tesla’s Chinese dominance, particularly as the US automaker struggles with several issues. These are increasing controversies surrounding CEO Elon Musk’s ties with former US President Donald Trump, as well as increasing tariffs imposed on Chinese auto manufacturers, such as BYD, in Western markets.
In spite of these outside pressures, BYD has continued to sell vehicles strongly. The company sold 1.76 million electric cars in 2024, just behind Tesla’s 1.79 million. But BYD’s overall sales number is more impressive when hybrid car sales are included. The company set a new record, selling a record 4.3 million vehicles worldwide in 2024.
Apart from its stunning sales figures, BYD has also rolled out a new model to take on Tesla’s products. The Qin L model, which is available in China for 119,800 yuan, is quite a contrast to the Tesla Model 3 that begins at 235,500 yuan. The low price is timely, as Chinese consumers are facing economic hardships such as a property crisis, weakening growth, and local government debt. With these economic realities in place, BYD’s less expensive model will appeal to price-conscious purchasers.
Byd founder Wang Chuanfu sent shockwaves last week when he announced new battery charging technology capable of charging an electric car in as little as five minutes.
It is faster than Tesla’s supercharger system, which charges a car in about 15 minutes. Also, BYD has opened up its “God’s Eye” advanced driver-assistance technology for free across all its models, making the cars even more desirable.
Stocks in BYD have risen by over 50% this year, a reflection of the company’s increasing presence in the international auto industry. The corporation is also supported by Warren Buffett’s Berkshire Hathaway, whose long-term support of BYD gives the brand added credibility.
As BYD’s success is ever-increasing, Tesla finds itself increasingly scrutinized as a result of Elon Musk’s entanglement in international politics. Musk’s latest appointment as head of the US Department for Government Efficiency (DOGE) has come under criticism, particularly because of his political activism, such as his backing of the far-right Alternative für Deutschland party in Germany and his outspoken criticism of UK politicians, including Prime Minister Keir Starmer.
This increasing backlash, along with the political and economic issues surrounding Tesla, has made it increasingly hard for the company to hold its leading position in the global EV market. At the same time, Chinese automakers such as BYD have been hit with tariffs in major markets, including the US and the European Union, further making it hard for them to compete globally.
In spite of these obstacles, BYD’s success is a changing tide in the EV market. The company’s record-breaking sales, low prices, and innovative technology have made it a strong competitor to Tesla, especially in China. As the world EV market continues to grow, it is evident that the battle between BYD and Tesla will heat up, to the advantage of consumers with increased options and innovations in the electric vehicle market.
