BYD Surpasses Tesla in Revenue, Reshaping EV Market Dynamics

NEW YORK — BYD, China’s burgeoning electric vehicle manufacturer, crossed the $100 billion revenue mark for the first time, outpacing Tesla‘s annual revenue by $10 billion in 2024, according to a report released Monday.

With reported revenues of $107 billion for the past year, BYD continues to capture market share in the global automotive sector, particularly in China, despite U.S. trade restrictions that limit its presence in the American market. This landmark achievement occurs just after the company introduced a new charging system that offers 250 miles of range in just five minutes.

BYD’s stock, listed in Hong Kong, has surged more than 50% in 2025, marking a significant momentum shift in the EV landscape. Analysts say the recent developments should pose a challenge to Tesla CEO Elon Musk, whose leadership has faced increasing scrutiny amid political associations that negatively impact the company’s image.

“BYD’s growth signifies the strength of Chinese innovation in the auto industry. They are eating into Tesla’s market share not just locally but globally,” said Felipe Munoz, an analyst at JATO, an automotive market analysis firm. “The gap in Tesla’s production capabilities and BYD’s pricing strategy presents a serious challenge.”

While BYD thrives, Tesla has seen a troublesome decline in its stock price, which has dropped for nine consecutive weeks. Among the factors influencing this downturn are the rising popularity of competing brands in Europe, where Tesla sales decreased by 44% in February. Meanwhile, Chinese manufacturers enjoyed a sales increase of 82% during the same period.

Notably, Tesla’s struggles may have been exacerbated by Musk’s support for far-right political factions in Europe, which coincided with a 75% plunge in sales in Germany — Europe’s largest automotive market. As analysts revise their expectations for Tesla, signs of recovery emerged when Musk called for an all-hands meeting, urging employees to retain their shares, resulting in a 5% rebound on Friday and a further 12% gain on Monday.

Yet, Tesla’s revenue remains over 40% below its all-time record high set last December, leading to increased scrutiny and criticism of Musk’s management style. Disenchanted investors are questioning the future market viability of Tesla’s Cybertruck as resale values plummet.

In a bid to remain competitive, Tesla is reportedly working on a more affordable variant of its Model Y, but production isn’t expected to ramp up until 2026. Meanwhile, BYD recently launched the Qin L EV, boasting specs comparable to the Tesla Model 3 but priced at approximately $16,500, significantly undercutting Tesla’s base price of $32,000.

“Musk severely underestimated BYD back in 2011 when he dismissed its potential as a competitor,” Munoz added. “The landscape has fundamentally shifted in just over a decade.” Tesla remains the top-selling EV brand in the U.S., but experts warn that absent protective tariffs, BYD might soon pose a daunting challenge to Musk’s dominance.