Chinese Automaker BYD Surpasses Tesla in Quarterly Revenue

In a significant industry shift, Chinese automotive manufacturer BYD has overtaken Tesla in quarterly revenue for the first time. The third quarter saw BYD achieve a record 201.12 billion Yuan ($28.24 billion), representing a substantial 24% year-over-year increase and comfortably exceeding Tesla’s $25.18 billion.

Profit Growth Amid Market Competition

Despite intense price competition within China’s automotive sector, BYD demonstrated robust financial health. The company reported a net profit increase of 11.5%, reaching 11.6 billion Yuan. This performance underscores the success of BYD’s diversified vehicle strategy. Plug-in hybrid sales experienced remarkable growth, surging 75.6% to 685,830 units, while sales of pure electric vehicles saw a more modest 2.7% gain.

The company’s affordable hybrid models, featuring advanced technology, are resonating strongly with Chinese consumers concerned about driving range limitations and charging infrastructure availability. Government subsidies providing up to 20,000 Yuan per vehicle are further stimulating demand.

International Expansion Strategy

BYD continues its global expansion despite increasing trade barriers, including recent EU tariffs on Chinese electric vehicles reaching 45.3%. The automaker’s international sales climbed 32.6% during the third quarter, with 94,477 vehicles sold overseas. To circumvent trade restrictions, BYD is establishing manufacturing facilities in strategic locations including Hungary, Turkey, Thailand, and Brazil.

Should investors sell immediately? Or is it worth buying BYD?

While Tesla maintains advantages in profit margins and autonomous driving technology, BYD is rapidly narrowing the technological gap. The Chinese manufacturer has committed to substantial research and development investment, with projected 2024 expenditures of $6.5 billion—nearly 50% higher than Tesla’s planned R&D spending.

Shifting Competitive Landscape

This quarterly revenue milestone signals a pivotal moment in the global electric vehicle industry’s competitive dynamics. Having closed the revenue gap with its American rival, BYD now faces the dual challenge of sustaining profitability while scaling international operations. Market observers are watching whether the company can maintain its growth trajectory as price competition continues to pressure margins.

The latest financial results provide compelling evidence that Chinese manufacturers are emerging as dominant forces in the global electric vehicle market. The battle for industry leadership appears to be entering a new, more intense phase.