Chinese electric vehicle (EV) giant BYD outperformed Tesla in 2024, reporting annual revenue of $107 billion. The Shenzhen-based automaker saw a 29% revenue increase, reaching 777 billion yuan. In comparison, Tesla generated $97.7 billion in the same period. BYD’s growth was driven by strong hybrid car sales and its expansion into budget-friendly models aimed at the Chinese market.
At the same time, Tesla faces mounting global criticism due to CEO Elon Musk’s political ties. Meanwhile, Chinese automakers, including BYD, navigate increasing tariffs from Western markets like the U.S. and the European Union.
BYD Gains Market Share with Hybrid and Budget Models
BYD and Tesla were nearly neck and neck in pure electric vehicle sales in 2024. Tesla delivered 1.79 million fully electric cars, while BYD sold 1.76 million. However, BYD’s hybrid lineup significantly boosted total sales, pushing its global deliveries to a record 4.3 million units.
To strengthen its position, BYD introduced the Qin L, an affordable EV designed to compete directly with the Tesla Model 3. Priced at 119,800 yuan ($16,600), the Qin L is nearly half the cost of Tesla’s Model 3, which starts at 235,500 yuan ($32,600) in China.
This launch comes at a time of slowing consumer spending in China. Economic challenges, including a struggling property sector and high local government debt, have made Chinese buyers more cautious with their finances.
BYD’s Technological Innovations Reshape the EV Market
BYD’s rapid growth is fueled by constant innovation. Founder Wang Chuanfu recently unveiled a new battery system capable of charging an EV in just five minutes. This breakthrough significantly reduces charging time, making it two-thirds faster than Tesla’s current Superchargers.
The company is also making its advanced “God’s Eye” driving system standard in all new models. This feature enhances autonomous driving capabilities and positions BYD as a serious competitor in the smart vehicle sector.
Warren Buffett’s Berkshire Hathaway has long backed BYD, and investor confidence remains strong. BYD’s stock has surged over 50% since January, reflecting optimism about the company’s expansion strategy.
Tesla Faces Global Scrutiny as Musk Sparks Controversy
While BYD focuses on growth, Tesla has encountered public backlash. CEO Elon Musk’s political involvement has drawn criticism, particularly his close ties to former U.S. President Donald Trump. Musk’s recent appointment as head of the spending-cutting agency DOGE has further fueled debate.
In Europe, Musk’s support for Germany’s far-right AfD party and his criticism of U.K. Prime Minister Keir Starmer have sparked outrage. These controversies may impact Tesla’s brand perception in key markets.
Trade Barriers Challenge Chinese EV Makers
Western nations have responded to China’s increasing EV exports with high tariffs, affecting companies like BYD. The U.S. and the European Union have imposed new trade barriers aimed at protecting local manufacturers from China’s low-cost EVs.
Despite these challenges, BYD remains committed to expanding its global footprint. The company’s strategy of innovation, affordability, and aggressive market expansion continues to strengthen its position as Tesla’s biggest rival.