BYD Surpasses Tesla in 2024 Revenue and Challenges in EV Market

BYD has outpaced Tesla in annual revenue for 2024, reporting $107 billion compared to Tesla’s $97.7 billion. The rise is attributed largely to growth in hybrid vehicle sales and a new lower-priced model. Additionally, BYD’s advancements in charging technology and driver-assistance systems highlight its competitive strength amid Musk’s political challenges and global tariffs against Chinese manufacturers.

Chinese electric vehicle manufacturer BYD has surpassed Tesla in annual revenue for 2024. The Shenzhen-based company reported a revenue increase of 29%, totaling 777 billion yuan ($107 billion; £83 billion), significantly higher than Tesla’s $97.7 billion. BYD’s hybrid vehicle sales contributed significantly to this growth, and they have recently launched a new, lower-priced model aimed at competing with Tesla’s top-selling Model 3 in China.

In the previous year, BYD sold approximately 1.76 million electric vehicles, closely trailing Tesla, which sold about 1.79 million EVs. However, when including hybrid car sales, BYD’s total reached a record 4.3 million vehicles globally in 2024. The newly announced Qin L model starts at 119,800 yuan, whereas the Tesla Model 3 begins at 235,500 yuan.

The backdrop to this competitive landscape involves Chinese consumers reducing spending due to economic difficulties, such as a property crisis and slowing growth. Last week, BYD’s founder, Wang Chuanfu, unveiled new battery charging technology that claims to charge an EV in just five minutes, outperforming Tesla’s supercharger, which requires about 15 minutes.

Additionally, BYD announced that its advanced driver-assistance technology, referred to as “God’s Eye,” will be provided at no extra charge in all models. The company’s shares have soared over 50% this year, boosted by investor confidence, notably from Warren Buffett. Meanwhile, Elon Musk’s public image has been tarnished by his political affiliations, as his roles in U.S. government and support for political parties abroad have drawn criticism. Furthermore, Chinese EV manufacturers continue to face tariffs from countries including the U.S. and the European Union.

BYD’s prominent leap in revenue and aggressive pricing strategy signifies its competitive edge over Tesla in the EV market. The company’s innovative technology and expansion in hybrid vehicle sales are pivotal in outperforming Tesla. The political controversies surrounding Musk and increasing tariffs on Chinese products add complexity to Tesla’s position, potentially impacting its market performance and growth strategies.

Original Source: www.bbc.com