The Chinese electric vehicle manufacturer BYD (Build Your Dream) reported higher revenues in 2024 than its rival Tesla.
The Shenzhen-based company announced that revenues increased by 29%, reaching 107 billion dollars, driven by sales of its hybrid vehicles. BYD’s revenues exceeded the 97.7 billion dollars reported by Tesla, Elon Musk’s company, as reported by BBC.
The success of the Chinese manufacturer, which Elon Musk mocked in an interview in 2011, comes into focus as Tesla faces a global backlash due to the billionaire's ties to US President Donald Trump and as Chinese automakers are affected by tariffs imposed by Western countries.
BYD sold approximately the same number of electric cars as Tesla last year – 1.76 million compared to 1.79 million. However, the sales of hybrid cars from the Chinese company reached a record level of 4.3 million vehicles globally in 2024.
Furthermore, BYD is taking the challenge further: on Sunday, it launched a car at a lower price to compete with the Tesla Model 3, long the best-selling electric vehicle in China. Its Qin L model has a starting price in China of 119,800 yuan (16,516 dollars), while the base version of the Tesla Model 3 costs double, 235,500 yuan (32,467 dollars).
BYD is seeking to adapt on the fly to changing conditions in the domestic auto market, where Chinese consumers are cutting back on expenses due to economic challenges, including the real estate crisis, slowing economic growth, and high local public debt.
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Last week, BYD founder Wang Chuanfu announced a new technology that could charge an electric vehicle in five minutes, a notable advancement compared to the approximately 15 minutes it takes to charge a Tesla. This comes after BYD announced in February that its advanced driver assistance system (ADAS), named "God's Eye," will be available for free in all its models.
The shares of the Chinese company, backed by veteran American investor Warren Buffett, have risen by over 50% so far this year.
Meanwhile, Tesla's market share in Europe continued to decline in February. Sales of the American electric vehicle (EV) manufacturer decreased for the second consecutive month, despite the overall growth in EV registrations on the continent. Sales of the company led by Elon Musk fell annually by 42.6% in the January-February period in Europe, according to data from the European Automobile Manufacturers Association (ACEA).
Global negative reaction against Musk and Tesla has escalated since the billionaire was appointed head of the Department for Government Efficiency (DOGE) in the Trump administration, aiming to reduce federal government expenses.
Musk has also intervened in foreign policy and openly supported the far-right Alternative for Germany party before the parliamentary elections in Germany, while also criticizing Prime Minister Keir Starmer and authorities in Romania after the cancellation of the presidential elections.