In 2024, BYD and Tesla engaged in intense competition in the electric vehicle market, ending the year in a technical tie. However, financial results have made the difference.
Sales: BYD delivered 4.27 million vehicles in 2024, significantly surpassing Tesla’s 1.79 million. The latter experienced its first decline in a decade, failing to exceed the 1.81 million units sold in 2023. Despite this, Tesla maintained the lead in pure electric car sales, as only 1.76 million of BYD’s 4.27 million vehicles were electric, according to the Financial Times.
Market Strategy: BYD’s success is largely due to its plug-in hybrids, a category that, in China, is grouped together with electric vehicles under the concept of “new energy vehicles.” This approach has allowed BYD to benefit from government incentives and reach a milestone of 10 million units produced, drastically reducing the time needed to achieve its last 5 million sales.
Outlook for 2025: In the electric vehicle sector, BYD came close to surpassing Tesla in 2024, and all indications suggest it will achieve this goal this year. The company projects sales of 5.5 million new energy vehicles in 2025, approaching Stellantis in the global automaker rankings. Additionally, it surpassed Tesla in revenue, reaching $107 billion compared to Elon Musk’s company’s $97.7 billion.
Innovation and Expansion: BYD continues to advance with technologies such as ultra-fast chargers capable of recharging 400 km in five minutes and the implementation of its advanced driver assistance system in all its models. It is also expanding its presence in emerging markets through its combination of hybrids and electric vehicles, aiming to sell 800,000 units outside China in 2025, doubling its figure from the previous year.
The Challenge in China: While Tesla faces a decline in the Chinese market, BYD has solidified its leadership with a 15% market share across all car sales. In February 2024, Tesla registered just over 30,000 units in China, its lowest figure since July 2022, casting doubt on its strategy in the world’s largest electric vehicle market.
With an aggressive strategy, new technologies, and international expansion, BYD is positioning itself as a strong contender to surpass Tesla in the electric vehicle sector in the coming years.
