BYD has reported higher annual revenue than Tesla for 2024, with significant growth attributed to hybrid vehicle sales and a new competitively priced model. Tesla, meanwhile, faces challenges due to political controversies and tariffs on Chinese manufacturers. Overall, BYD sold more vehicles when including hybrids, reinforcing its market position.
Chinese electric vehicle manufacturer BYD has surpassed its competitor, Tesla, by reporting a significant revenue increase for 2024. The Shenzhen-based company recorded an annual revenue rise of 29%, reaching 777 billion yuan ($107 billion; £83 billion), which exceeds Tesla’s reported revenue of $97.7 billion. This success is largely attributed to BYD’s hybrid vehicle sales.
Moreover, BYD has recently introduced a new, competitively priced car, the Qin L, aiming to challenge Tesla’s Model 3, which has consistently been the best-selling electric vehicle (EV) in China. Tesla now faces challenges globally, partly due to Elon Musk’s associations with former US President Donald Trump and the impact of tariffs on Chinese automakers in Western nations.
In terms of electric vehicle sales, BYD performed almost on par with Tesla last year, with sales of 1.76 million EVs compared to Tesla’s 1.79 million. However, when hybrid vehicle sales are included, BYD significantly outperformed Tesla by selling 4.3 million vehicles globally in 2024. The price difference also favors BYD, as the Qin L model starts at 119,800 yuan, compared to the Tesla Model 3’s base price of 235,500 yuan.
As the Chinese economy experiences challenges—such as a property crisis and high local government debt—consumer spending is decreasing. In response to market competition, Wang Chuanfu, BYD’s founder, recently announced new battery charging technology that could enable rapid EV charging in five minutes, offering a distinct advantage over Tesla’s supercharger, which takes approximately 15 minutes.
Additionally, BYD has plans to implement its “God’s Eye” advanced driver-assistance system free of charge across all its models. The company, which enjoys backing from notable investor Warren Buffett, has seen its shares increase by over 50% this year. Concurrently, the backlash against Musk and Tesla has intensified as a result of Musk’s political engagements and criticism of other nations’ politicians, alongside the tariffs imposed on China’s automotive exports in various regions, including the US and EU.
In summary, BYD has outpaced Tesla in terms of revenue and global vehicle sales, which is indicative of a successful strategy revitalized by hybrid offerings and competitive pricing. The challenges faced by Tesla, including political implications and tariffs, contrast with BYD’s innovative advancements in technology. This positions BYD as a formidable competitor in the electric vehicle market.
Original Source: www.bbc.com
