BYD reported revenues of $100 billion in 2024, surpassing Tesla’s $97.7 billion and is expected to surpass Tesla’s Tesla in 2025 (according to CounterPoint Research’s forecast).
Bider has surpassed Tesla’s sales in the past two quarters. In the first quarter of 2025, it sold 416,000 battery electric vehicles, a 39% increase from the same period last year, while Tesla’s 336,681 vehicles fell 13%. In 2024, it exported 417,204 units, an increase of 71.9%, ambitions to double it to more than 800,000 this year.
Counterpoint attributes this growth to BYD’s “technical leadership and vertically integrated production models, both supported by strong domestic policy support.” Its vertically integrated production model has a great cost advantage. In 2023, UBS carried out the removal of the BYD sealed sedan and found that about 75% of the parts inside it were made internally, compared to 35% for Volkswagen. Even if it relies on third-party suppliers, it is mainly domestic. UBS said the assembly cost is about 30% lower than the comparative model of Western companies.
Byd passed the benefits to customers. Last month, the rest of the world reported that Bider’s lowest-cost option was cheaper than Tesla in at least 10 markets they compete for. In China, Tesla’s most affordable model costs $32,438, while BYD costs $9,614 per unit.
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Promotion of R&D
Byd not only captures the market at a lower price, it also has features. The company originally started as a battery manufacturer in 1995. Battery technology remains one of its core advantages. It is known for its blade battery, a lithium phosphate (LFP) battery that promises to improve safety and energy efficiency. Last month, it introduced a charging system that could add 400km range in just five minutes (opposing Tesla’s supercharger, which takes 15 minutes to add 275km).
In February, Bit said it will offer “God’s Eye” driving assistance software in all models, including under $10,000 for less than $10,000, with most models at no extra cost. (Tesla charges subscription fees for similar systems.) All of this is driven by its R&D drive. Its CEO Wang Chuanfu said the company has the largest R&D personnel in the automotive company and filed 32 patent applications every working day.
Larger range
BYD’s R&D investment is one of a series of strategic calls issued by Chuanfu over the years, often in the case of investors’ suspicion. It entered the automotive manufacturing industry after acquiring a state-run automobile company in 2003. Investors believe this is transferred from its core battery manufacturing. But by 2008, Warren Buffett’s investment firm Berkshire Hathaway invested about $230 million in the company, giving global credibility and enhancing investors’ interests.
In 2008, it launched its first plug-in hybrid electric vehicle (PHEV), and two years later, its first fully battery electric vehicle (BEV). It stops production of ice trucks in 2022 and focuses on electric vehicles. Providing both PHEVS and BEVS can help you cater to a wider range of customers, including those who are reluctant to go all out. Despite BEV’s share of new sales, PHEVS has seen a higher growth in China, with registrations growing by 80% in 2024 (compared to 17.3% of BEV).
Beyond China
Although China remains the world’s largest electric vehicle market, it has also become one of the global ambitions to accelerate Byd. It can also expand its profit margins (currently below Tesla) as it pushes the highest levels of Europe’s top products, Denza and Yangwang. Its flagship store in London is located near Rolls-Royce, Ferrari and Bentley. But it faces challenges in exacerbating the trade war. The United States has imposed 100% tariffs on Chinese electric vehicles and Europe.
It is seeking alternative markets and manufacturing plants in Southeast Asia and South America. It wants to be in India, but so far has been cold on the shoulders. In 2023, the government rejected a proposal to build a $1 billion factory in partnership with Mega Engineering and Infrastructure in Hyderabad. This position has not changed. Even though it was waiting in India, Byd was still going somewhere else.
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