Tesla’s fierce battle to remain the world’s top EV company has just hit another roadblock.
On Monday, Chinese EV giant BYD reported annual revenues of 777 billion yuan for 2024. At current exchange rates, that equates to roughly $107 billion. By contrast, Tesla’s annual revenue last year was $97.7 billion.
BYD’s net profit jumped 34% year-over-year to just over 40 billion yuan, equivalent to $5.55 billion at current exchange rates. That exceeded analyst expectations of $5.44 billion, though it was below Tesla’s $7.1 billion 2024 profit.
BYD’s sales surge has been relentless. In January, it sold nearly twice as many EVs as Tesla, which saw sales slump by 11% year-over-year.
By early December, the Chinese carmaker had already surpassed its annual target, selling over 3.7 million cars in 11 months — eclipsing its 3.6 million goal with a month to spare. Ultimately, it sold 4.27 million EVs in 2024.
Tesla, meanwhile, suffered its first annual sales decline in more than a decade. It delivered 1.79 million vehicles in 2024, down 1% from 2023’s 1.81 million, despite a record-breaking 495,570 vehicle deliveries in Q4.
Adding to Tesla’s woes, BYD last week unveiled super-fast 1,000 kW chargers it says can add almost 250 miles of range to an electric vehicle in five minutes — four times as powerful as Tesla’s current 250 kW chargers, which Elon Musk’s automaker says can add 200 miles of range in 15 minutes. Tesla plans to roll out 500 kW chargers this year.
Tesla has also had a rough start to the year. CEO Musk’s aggressive cost-cutting efforts at DOGE have sparked a backlash against his EV maker, with Tesla facilities facing arson attacks, vandalism, and boycott calls across the US and Europe.
Over the past three months, Tesla stock has more than halved, and JPMorgan analysts slashed their price target to $135.
Shares could fall even further as investors weigh the impact of BYD’s new rapid charging technology, Tesla’s slowing global sales, and Musk’s distraction with DOGE.
BYD, however, also faces challenges in its quest for global expansion, including protective measures like Russia’s import taxes, the US’ high tariffs, and EU tariffs.
BYD’s executive vice president, Stella Li, told The Sunday Times on Saturday the tariffs would have the opposite effect and “will weaken” local industries.
Swedish EV battery maker Northvolt, once seen as Europe’s hope for an EV battery manufacturer to rival Asian automakers, filed for bankruptcy earlier this month. It cited growing capital costs, geopolitical instability, supply chain disruptions, and fluctuating demand as reasons for its bankruptcy.
Li also dismissed claims that BYD enjoys unfair state subsidies as “false” and accused European automakers of lagging behind Chinese brands in innovation.
“Our car is more stylish than any European-designed cars,” she told the outlet, adding: “Our car is more intelligent.”
