Chinese electric vehicle (EV) manufacturer BYD has reported impressive annual revenue figures for 2024, surpassing its main competitor, Tesla. The Shenzhen-based company announced that its revenue surged by 29%, reaching an impressive 777 billion yuan (approximately $107 billion or £83 billion). This growth was significantly driven by the robust sales of its hybrid vehicles, allowing BYD to outpace Tesla, which reported revenue of $97.7 billion.
In a strategic move to further challenge Tesla’s dominance in the market, BYD has recently launched a competitively priced vehicle aimed at rivaling Tesla’s Model 3, which has long held the title of the best-selling EV in China. This launch comes at a time when Tesla is facing scrutiny and backlash globally, particularly due to CEO Elon Musk’s connections with former U.S. President Donald Trump. Additionally, Chinese automakers, including BYD, have encountered challenges related to tariffs imposed by Western countries.
In terms of sales, BYD reported figures that closely matched those of Tesla, with approximately 1.76 million EVs sold compared to Tesla’s 1.79 million. However, when factoring in the sales of BYD’s hybrid vehicles, the company’s overall performance becomes even more impressive, with a record total of 4.3 million vehicles sold globally in 2024.
On Sunday, BYD unveiled its new Qin L model, which is priced at a competitive starting point of 119,800 yuan in China. In contrast, the basic version of Tesla’s Model 3 is priced at 235,500 yuan, highlighting BYD’s strategy to attract price-sensitive consumers in a challenging economic environment. This pricing strategy comes as Chinese consumers are tightening their spending amid economic difficulties, including a property crisis, slowing economic growth, and rising local government debt.
In addition to its competitive pricing, BYD’s founder, Wang Chuanfu, recently announced the development of new battery charging technology that could enable an electric vehicle to charge in just five minutes. This is a significant improvement compared to the approximately 15 minutes required to charge a Tesla using its supercharger system. Furthermore, in February, BYD revealed that its advanced driver-assistance technology, dubbed “God’s Eye,” would be available at no additional cost across all its models.
The company’s shares, backed by prominent U.S. investor Warren Buffett, have seen a remarkable increase of over 50% this year, reflecting investor confidence in BYD’s growth trajectory.
Meanwhile, the backlash against Musk and Tesla has intensified, particularly following Musk’s appointment as head of the Trump administration’s Department for Government Efficiency (DOGE), which is tasked with reducing federal government spending. Musk’s political interventions have also drawn criticism, including his support for the far-right party Alternative für Deutschland in Germany and his public critiques of UK politicians, such as Prime Minister Keir Starmer.
As the global EV market continues to evolve, BYD’s strategic initiatives and competitive offerings position it well to capitalize on the shifting landscape, despite the challenges faced by Chinese manufacturers in international markets due to tariffs and geopolitical tensions.
