March 25th, 2025
BYD has officially surpassed Tesla in annual revenue for 2024, marking a watershed moment in the global electric vehicle industry. The Chinese automaker reported revenue of 777 billion yuan ($107 billion), outpacing Tesla’s $97.7 billion and signaling a dramatic shift in the competitive landscape.
The revenue milestone represents a 29% year-over-year increase for BYD, exceeding analyst projections of 766 billion yuan. While BYD now leads in revenue, Tesla maintains an edge in profitability, with $7.1 billion in profit compared to BYD’s 40.3 billion yuan ($5.56 billion).
Neck-and-Neck in the EV Sprint
The battle for electric vehicle supremacy remains incredibly tight when looking at pure EV sales. Tesla delivered 1.79 million fully electric vehicles in 2024, just edging out BYD’s 1.76 million units. However, BYD’s hybrid strategy has proven remarkably effective, with total deliveries reaching 4.27 million vehicles when including hybrids.
This comprehensive approach has positioned BYD to challenge traditional automotive giants, with delivery numbers approaching those of Ford Motor Co. The Chinese manufacturer has set ambitious targets for 2025, aiming to sell between 5 million and 6 million vehicles.
Early 2025 results suggest BYD’s momentum is accelerating. The company reported sales up 93% year-on-year in the first two months, with February alone seeing a staggering 161% jump to 318,000 units. This growth stands in stark contrast to Tesla’s recent sales decline.
Innovation Fueling the Overtake
BYD’s technological advancements have played a crucial role in its market ascension. The company recently unveiled its “Super e-Platform” battery and charging technology, allowing EVs to charge for 400 kilometers (approximately 250 miles) in just five minutes – twice as fast as Tesla’s Supercharger network.
Price competitiveness has also been key to BYD’s strategy. Its recently launched Qin L model starts at 119,800 yuan ($16,500) in China, significantly undercutting Tesla’s Model 3, which is priced at 235,500 yuan ($32,400).
The company has democratized advanced driver assistance technology, making these features available across its entire lineup, including entry-level models.
Global Ambitions and Headwinds
While dominating its home market, BYD is aggressively targeting international expansion, particularly in Europe. The company has launched advertising campaigns and opened showrooms across the continent, showcasing its compact electric models and fast-charging technology.
However, BYD faces significant geopolitical challenges. The European Union has launched regulatory investigations into alleged unfair subsidies related to BYD’s Hungary factory. Additionally, U.S. tariffs on Chinese imports could potentially hamper the company’s global growth strategy.
Tesla’s Challenging Road
As BYD celebrates its revenue milestone, Tesla is navigating a series of challenges. The American EV pioneer reported lower-than-expected Q4 profits for 2024 and experienced its first annual sales drop in a decade. Tesla has also seen declining sales in Europe, a trend some analysts attribute partly to CEO Elon Musk’s support for far-right political groups in the region.
BYD’s achievement in surpassing Tesla’s revenue represents a significant shift in the global EV landscape. It highlights China’s growing dominance in the electric vehicle industry and sets the stage for intensified competition as both companies pursue global market share.
