For the first time, Chinese automaker BYD has outpaced Tesla in revenue, marking a significant milestone in the electric vehicle (EV) market.
Surpassing Tesla
In the third quarter of 2024, BYD generated approximately $26.6 billion, surpassing Tesla’s $23.8 billion for the same period.
This revenue growth was largely driven by BYD’s strong sales of both electric and hybrid vehicles, a factor that distinguishes it from Tesla, which exclusively sells fully electric cars, according to Boosted.
During the quarter, BYD sold 1.1 million vehicles, with roughly 685,000 being hybrids and 443,000 fully electric.
Shifting Approach
This spike in sales for BYD was further bolstered by a recent wave of government subsidies in China for eco-friendly vehicles, covering both hybrid and electric models.
While hybrids remain a substantial portion of BYD’s lineup, they play a crucial role in its overall revenue advantage over Tesla.
Despite BYD’s record-breaking revenue, profitability tells a different story. The company reported a net profit of $1.5 billion, suggesting that its aggressive pricing strategies to counter global competition have squeezed its margins.
To maintain momentum, BYD has recently shifted its approach, offering vehicles with longer range and more features at competitive prices, instead of focusing on discounts.
This strategy has helped BYD secure its leading position in sales, though it has impacted its net earnings.
