The global electric vehicle (EV) market is witnessing a dramatic shift as BYD emerges as a formidable rival to Tesla. In 2024, BYD reported an impressive annual revenue of $107 billion, surpassing Tesla's $97.7 billion. While Tesla experienced its first annual sales decline in over a decade, delivering 1.79 million vehicles, BYD achieved a remarkable milestone by selling 4.27 million EVs. Additionally, BYD unveiled cutting-edge 1,000 kW chargers capable of adding nearly 250 miles of range in just five minutes. Meanwhile, Tesla faces internal and external challenges, including arson attacks on facilities, vandalism, and plummeting stock prices. Despite these achievements, BYD confronts obstacles in its global expansion due to tariffs imposed by various countries.
In a year marked by intense competition, BYD has established itself as a leading force in the EV industry. The Chinese automaker's financial performance for 2024 reflects robust growth, with revenues climbing to 777 billion yuan ($107 billion). This figure not only eclipses Tesla's annual revenue but also highlights BYD's increasing market share. Furthermore, BYD's net profit surged by 34% year-over-year, reaching approximately $5.55 billion, slightly below Tesla's $7.1 billion but exceeding analyst expectations.
Beyond financial success, BYD demonstrated exceptional sales momentum throughout the year. In January alone, the company sold nearly twice as many EVs as Tesla, which faced an 11% year-over-year decline in sales. By early December, BYD had already exceeded its annual target of 3.6 million vehicles, ultimately delivering 4.27 million EVs in 2024. In contrast, Tesla's deliveries dropped by 1%, reflecting broader challenges within the organization.
Tesla's difficulties extend beyond declining sales figures. Recent developments indicate growing unrest among stakeholders following CEO Elon Musk's aggressive cost-cutting measures at DOGE. This strategy has led to backlash, resulting in arson attacks, vandalism, and boycott calls across key markets such as the US and Europe. Consequently, Tesla's stock value has more than halved over the past three months, prompting JPMorgan analysts to reduce their price target to $135.
Amid this rivalry, BYD continues to innovate with groundbreaking technologies like its 1,000 kW super-fast chargers. These chargers, four times more powerful than Tesla's current 250 kW units, offer unparalleled charging speeds that could redefine customer expectations. Tesla plans to introduce 500 kW chargers later this year, yet BYD's advancements underscore its commitment to technological leadership.
Despite its accomplishments, BYD encounters hurdles in expanding globally. Tariffs imposed by countries such as Russia, the US, and the EU pose significant challenges to the company's ambitions. BYD's executive vice president, Stella Li, argues that these protective measures may inadvertently harm local industries rather than bolster them. She dismisses claims of unfair state subsidies as unfounded, asserting that European automakers lag behind Chinese brands in innovation and design sophistication.
As the EV landscape evolves, the rivalry between BYD and Tesla intensifies. BYD's rapid ascent signals a new era in global automotive manufacturing, characterized by fierce competition and rapid technological progress. Meanwhile, Tesla must navigate internal strife and external pressures to maintain its position as a leader in the EV sector. Both companies face unique challenges in achieving sustainable growth while adapting to changing market dynamics and geopolitical conditions.