BYD blasts past Tesla with record sales surge

BYD has surpassed Tesla in annual revenue for the first time, cementing its status as the new driving force in the global EV industry. The Chinese automaker reported a record revenue for 2024, up nearly 30 percent from the last year. Windfall was particularly advantageous in its home market.

Where Tesla posted revenue of €90.5 billion for 2024, BYD topped €99.1 billion, a new record for the Chinese carmaker. While Tesla still maintains a much higher market valuation, BYD’s rapid sales growth and strong profitability suggest the Chinese manufacturer is pulling ahead in key areas—especially in its home market.

With a bit of help from hybrids 

The milestone year for the Shenzhen-based carmaker was driven by explosive growth in vehicle deliveries. The company sold 4.4 million vehicles in 2024, including 1.8 million battery-electric vehicles and 2.6 million plug-in hybrids.

Total deliveries were nearly 1.4 million more than the previous year, almost eclipsing Audi’s total annual output (1.6 million units). Tesla, by comparison, delivered around 1.8 million electric cars globally, meaning BYD matched Tesla on pure EVs and far outpaced it overall thanks to its hybrid offerings.

BYD’s net profit for the year jumped 40 percent to €5.0 billion, driven by strong domestic demand and a product mix that includes low-cost electric models like the Seagull, which retails in China for the equivalent of €8,000. That model is expected to launch in Europe later this year.

Despite fierce price wars in China’s hypercompetitive market, BYD kept margins relatively stable. Its gross margin dipped from 22 to 17 percent in the final quarter, which the company attributed to a technical accounting adjustment.

Even so, BYD’s margins remain roughly double those of luxury brands like BMW and Mercedes-Benz. Analysts were particularly impressed with BYD’s ability to defend profitability while expanding aggressively.

Aiming for fourth place

Founder and CEO Wang Chuanfu has set an ambitious target of 6 million vehicle deliveries for 2025. If achieved, BYD would leapfrog General Motors and Stellantis to become the world’s fourth-largest automaker, trailing only Toyota, Volkswagen Group, and Hyundai-Kia. 

Already, BYD commands over 95 percent of its sales from China but is rapidly expanding its global footprint. In Europe, it plans to open a new factory in Hungary later this year, with additional sites in Turkey, Brazil, and Southeast Asia also developing.

Where Tesla once led with innovation, BYD is now striking back. The company has rolled out a suite of advanced driver-assistance features under the name ‘God’s Eye’ as standard across much of its lineup.

More recently, it unveiled a superfast charging platform (Super-e) capable of delivering 470 kilometers of range in just five minutes, increasing the battery voltage to 1000 V.

BYD’s momentum is also reflected in the stock market. Shares have surged 75 percent over the past year. BYD deploys a dual-strategy approach: electric cars for growth and plug-in hybrids for resilience.

With hybrids exempt from Europe’s new import tariffs on Chinese EVs, the brand is experiencing strong momentum for the Seal U plug-in hybrid across the continent. As Tesla stumbles — particularly in China, where sales have declined five months in a row — BYD continues to set the pace in the EV race.