Shenzhen, China – Chinese electric vehicle maker BYD has surged ahead of its rival Tesla in annual revenue for 2024, reporting a 29% increase to reach 777 billion yuan ($107bn; £83bn). The company’s success has been propelled by strong sales of its hybrid vehicles, outstripping the $97.7 billion reported by Elon Musk’s Tesla. BYD’s entry into the lower-priced car market, directly competing with Tesla’s Model 3, marks a significant milestone as it aims to dominate the electric vehicle market in China.
In a strategic move to capture more market share, BYD sold approximately the same number of electric vehicles as Tesla last year, with 1.76 million units compared to 1.79 million for Tesla. However, when factoring in the sales of BYD’s hybrid cars, the company emerges as a much larger player, selling a record 4.3 million vehicles globally in 2024. The launch of BYD’s Qin L model, priced competitively at 119,800 yuan in China, presents a viable alternative to Tesla’s Model 3, which starts at 235,500 yuan.
Moreover, amid economic challenges in China, including a property crisis and slowing growth, Chinese consumers are increasingly vigilant about their spending habits. This shift in consumer behavior has prompted the introduction of more affordable electric vehicles by BYD, attracting a larger consumer base. Founder Wang Chuanfu’s unveiling of new battery charging technology capable of fully charging an EV in just five minutes represents a significant technological advancement, outperforming Tesla’s supercharger system which takes approximately 15 minutes.
Furthermore, BYD’s decision to offer its “God’s Eye” advanced driver-assistance technology for free in all its models showcases the company’s commitment to innovation and safety in the electric vehicle sector. With veteran US investor Warren Buffett backing BYD, the company’s shares have surged by over 50% this year, reflecting investor confidence in its growth potential. Meanwhile, Tesla has been embroiled in controversies surrounding Elon Musk’s political affiliations and interventions, which have sparked backlash and raised concerns among consumers globally.
As Chinese EV manufacturers face tariffs in key markets like the US and the European Union, BYD’s expansion strategies and technological advancements position it as a formidable competitor to Tesla. The shift towards more affordable electric vehicles, coupled with groundbreaking technologies, marks a transformative period for BYD as it seeks to establish dominance in the global electric vehicle market, challenging Tesla’s stronghold in the industry.