BYD Surges Ahead of Tesla in EV Sales

Overview of the Competition: The Chinese electric vehicle leader BYD Co Ltd. BYDDY has now surpassed its American counterpart Tesla Inc. TSLA in battery electric vehicle (BEV) sales multiple times within the last two years.

Timeline of Sales: BYD claimed the title of the world’s top BEV seller in the fourth quarter of 2023. Tesla regained this position in the first quarter of 2024 and maintained it for three consecutive quarters. However, BYD reclaimed the lead in the fourth quarter of 2024 by selling 595,413 BEVs, outpacing Tesla’s 495,570 sales during that period.

Overall for 2024, BYD achieved total sales of 1,764,992 BEVs, falling short of Tesla’s sales by a mere 24,234 units.

Unlike Tesla, which focuses solely on BEVs, BYD also produces plug-in hybrids (PHEVs), giving it a broader market to tap into.

Research from Rho Motion predicts that a total of 17.1 million electric vehicles (EVs), including both BEVs and PHEVs, will be sold in 2024.

Of that total, BYD sold 4.25 million passenger vehicles (BEVs and PHEVs combined), representing about 25% of worldwide EV sales during the year. In comparison, Tesla sold 1.79 million units, accounting for about 10.5% of the global EV market.

Significance of the Shift: Early in the rivalry, Tesla CEO Elon Musk dismissed BYD as a serious competitor during a 2011 Bloomberg interview. Musk laughed when asked about BYD’s potential to rival Tesla, expressing skepticism about the appeal of their vehicles.

Fast forward to January 2024, and Musk’s perspective changed significantly. He acknowledged BYD’s strengths, stating, “If there are not trade barriers established, they will pretty much demolish most other car companies in the world. So they’re extremely good,” reflecting on BYD’s growth after it outpaced Tesla in quarterly deliveries for the first time.

Since then, the competition has only intensified. In the third quarter of 2024, BYD also surpassed Tesla in quarterly revenue for the first time since 2022. Notably, BYD ceased production of combustion engine vehicles in March 2022 to concentrate exclusively on electric vehicles.

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