Chinese electric car giant BYD just hit a major milestone—its sales topped $100 billion for the first time, surpassing rival Tesla.
Backed by Warren Buffett and often called the "Tesla killer," BYD has dominated its home market and is now expanding across Europe. The company’s revenue shot up 29% last year to $107 billion (£83 billion), outpacing Tesla’s £75 billion. A big part of BYD’s success? Strong demand for plug-in hybrid models.
Profits at BYD—short for Build Your Dreams—jumped 34% to £4.3 billion in 2024, with more than 4 million cars sold. Meanwhile, Tesla saw a 1% drop in deliveries, shipping 1.8 million vehicles. The American EV maker has been struggling with growing competition from more affordable brands, including BYD, as well as controversies surrounding Elon Musk.
Adding to Tesla’s troubles, new research shows its European sales plummeted 44% last month, falling behind Volkswagen, BMW, and Chinese competitors. Musk’s increasing involvement in politics and his expanding business empire—spanning Tesla, SpaceX, and social media platform X—has also raised concerns that he's overstretched.
Another hit to Tesla’s numbers? The phase-out of the current Model Y, its best-selling car. Meanwhile, BYD recently unveiled a groundbreaking battery system that allows EVs to recharge in just five minutes, sending its stock to record highs.
While Tesla’s shares rebounded about 10% on Sunday on hopes of reduced tariffs, they’re still down nearly 40% since their peak in December. BYD, on the other hand, has seen its stock soar more than 30% in that time.
Danni Hewson, head of financial analysis at broker AJ Bell, summed it up: BYD’s results "will have gone down like sour milk" at Tesla HQ.
She said, "The Chinese car maker was once dissed by Elon Musk as not having a great product, but that product has just scored BYD record sales in 2024, motoring past Tesla."
