China’s electric vehicle (EV) powerhouse, BYD, has solidified its position as a global leader, generating 777 billion yuan ($107 billion) in revenue for 2024. This marks a significant leap ahead of Tesla, whose annual earnings reached $97.7 billion. BYD’s impressive growth highlights its dominance in the clean-energy vehicle market, driven by increasing demand for both fully electric and hybrid models.
The Chinese automaker reported a 29% increase in sales from the previous year, delivering 4.27 million vehicles. In contrast, Tesla’s 2024 deliveries totaled 1.79 million units, reflecting a slight 1.1% decline—the first drop in the company’s history.
BYD’s Rising Market Influence
In its latest annual report, BYD’s CEO, Wang Chuanfu, emphasized the company’s rapid expansion and industry leadership. He noted that BYD has successfully disrupted the global market by challenging foreign competitors and advancing technology in batteries, electronics, and new-energy vehicles.
A key factor in BYD’s success is its continuous innovation. Recently, the company introduced a cutting-edge ultra-fast charging system capable of providing 250 miles of range in just five minutes. This surpasses Tesla’s Supercharger technology, which requires 15 minutes to add 200 miles of range.
Additionally, BYD rolled out its proprietary “God’s Eye” driver-assistance system at no extra cost across most of its vehicle lineup. This strategic move intensifies competition, especially against Tesla’s Full Self-Driving (FSD) system, which requires U.S. customers to pay $99 per month or a one-time fee of $8,000. Analysts predict that Tesla may need to reconsider its pricing strategy in China to remain competitive.
Tesla’s Struggles in China and Europe
Despite its global brand recognition, Tesla faces challenges in China, the world’s largest automotive market. Regulatory delays have hindered the company’s long-awaited rollout of FSD in the region. Although Tesla briefly launched free FSD trials last week, it abruptly suspended them, leaving customers frustrated. Tesla’s support team assured users that efforts were underway to obtain regulatory approval, but no definitive timeline was provided.
While BYD dominates China’s EV market with a 32% share of total new-energy vehicle sales, Tesla holds just 6.1% despite achieving record-high shipments, according to the China Passenger Car Association.
Tesla is also struggling in Europe, where its sales declined for the second consecutive month in February. Compared to the same period in 2024, the company sold approximately 40% fewer vehicles, as reported by the European Automobile Manufacturers’ Association.
The Global EV Race Intensifies
Although Chinese EV manufacturers face restrictions in the U.S. due to tariffs, BYD’s dominance in China and growing influence in other markets put significant pressure on Tesla. As the EV industry continues evolving, both companies are racing to innovate, attract customers, and secure market share in an increasingly competitive global landscape.
