Tesla and BYD are two of the biggest names in the electric vehicle (EV) industry. Tesla, led by Elon Musk, has long been a leader in fully battery-powered electric vehicles (BEVs). Meanwhile, BYD, a major Chinese company known for both EVs and battery production, has been quickly catching up—and even surpassing Tesla in some areas. In 2022, BYD's sales were more than double Tesla's overall vehicle sales, a major milestone that shook up the industry.

Tesla and BYD’s Sales Race

In the third quarter of 2024, Tesla sold a solid 462,890 vehicles, while BYD’s sales topped a whopping 1.13 million units. Tesla’s focus is solely on BEVs, while BYD sells a mix of BEVs and plug-in hybrids. Both companies rely heavily on the Chinese market, but the numbers show a clear trend: BYD’s production and sales are growing faster than Tesla’s.

BYD has also been breaking records month after month. In October 2024, BYD sold over 500,000 EVs in just that month, marking a 66.5% increase from the previous year. Tesla has been strong too, but BYD’s consistent growth has made it the EV company to watch.

Why Are BYD’s Numbers So High?

One of the main reasons behind BYD’s success is its approach to plug-in hybrids. These hybrids offer flexibility with both electric and gasoline engines, which appeals to many buyers who aren’t ready to switch fully to electric. In October 2024, BYD sold over 310,000 plug-in hybrids, a category that Tesla doesn’t offer. The company’s long-range hybrids and next-generation systems have been especially popular, giving it a competitive edge in both China and other markets.

BYD’s goal for 2024 was to sell 3.6 million vehicles, and it’s already close to hitting this target. By the end of the year, BYD is expected to have sold well over four million vehicles, further cementing its position as a top EV manufacturer.

Tesla’s Big Numbers, But Slipping Margins

Tesla, while still a major player, has been struggling with lower profit margins recently. In an effort to keep up sales, Tesla has had to slash prices on several models around the world. This started in late 2022 and continued through 2024. Tesla’s Model 3 and Model Y, two of its best-selling cars, have been given big price cuts and even 0% financing options in the United States to attract more buyers.

Price cuts help boost sales, but they also reduce profits. Tesla’s recent Q3 earnings did show a profit increase, thanks to recovering margins, but keeping those numbers up might be tricky if the company has to keep discounting vehicles to stay competitive. Meanwhile, BYD has been able to maintain its pricing structure without heavy discounts, keeping its profit margins stronger than Tesla’s.

Tesla’s Model Lineup and the Cybertruck Launch

Tesla’s lineup includes the Model 3, Model Y, Model X, and Model S, along with the highly anticipated Cybertruck and the Tesla Semi truck. The Model Y has become Tesla’s best-seller, accounting for most of its sales. However, a revamped Model 3 didn’t boost sales as expected in the U.S., Europe, or China.

The Cybertruck, a futuristic-looking electric truck, recently started production, but it seems to be primarily targeted at North American buyers. Tesla has discontinued the expensive Foundation series Cybertruck and is now selling other versions starting at $79,990, a price that should make it eligible for tax credits in the U.S. market. With these changes, Tesla is clearly pushing hard to close out 2024 on a strong note.

Tesla has also been working on its Semi truck, delivering a few dozen units to PepsiCo and some other customers, including Walmart. The production of the Semi has been delayed several times, and mass production is now expected in 2026. However, given Tesla’s history of timeline changes, it’s uncertain if this target will be met.