Chinese electric vehicle manufacturer BYD has overtaken Tesla in global revenue, cementing its position as a serious contender for dominance in the electric vehicle (EV) market.
The Shenzhen-based company reported a 29 per cent surge in global revenues for 2024, reaching 777 billion yuan (£84 billion / $107 billion), crossing the $100 billion milestone for the first time. In comparison, Tesla’s revenue stood at $97.7 billion over the same period.
Founded in 1995 and backed by US billionaire Warren Buffett, BYD – short for “Build Your Dreams” – has been rapidly expanding its international footprint, including a growing network of showrooms in the UK. Its rise has been accelerated by aggressive pricing, particularly in its home market, and a growing portfolio of models across both all-electric and plug-in hybrid segments.
Unlike Tesla, BYD produces a mix of zero-emission vehicles and petrol-electric hybrids, enabling it to appeal to a broader consumer base. While pure electric vehicle deliveries for both manufacturers are closely matched at just under 1.8 million units annually, BYD’s more affordable pricing has played a pivotal role in boosting its market share.
The company also recently made waves with its announcement of a breakthrough charging technology, claiming to deliver 232 miles of range in just five minutes – though this has yet to be independently verified in the UK or Europe.
Tesla continues to face headwinds in key markets. In Europe, February sales figures showed the US firm slipping behind Volkswagen, BMW, and several Chinese competitors. According to figures from JATO Dynamics, new EV registrations in Europe fell 2.5 per cent year-on-year to 966,000 vehicles in February. However, Chinese manufacturers defied the downturn, increasing their market share by 82 per cent to 40,600 vehicles. Chinese EV brands alone accounted for 19,800 sales – comfortably ahead of Tesla’s 15,700, which represented a 34 per cent drop.
In the UK, BYD’s footprint remains smaller but is growing. The company sold 8,800 vehicles in 2024, compared to Tesla’s 50,000. In the first two months of 2025, BYD registered 2,800 UK sales, while Tesla sold 5,300.
Tesla’s challenges extend beyond vehicle sales. The company’s CEO, Elon Musk, has become an increasingly polarising figure in global politics. His public support for hard-right parties in Europe, including posts on his X platform (formerly Twitter) backing Germany’s Alternative für Deutschland, has prompted concerns among some European consumers. His vocal backing of Donald Trump’s presidential campaign has also raised eyebrows, particularly in markets more wary of US political rhetoric.
Industry analysts suggest this political entanglement, coupled with Tesla’s limited model line-up and the anticipated phase-out of the current Model Y, may be contributing to a shift in consumer sentiment.
“Tesla is experiencing a period of immense change,” said Felipe Munoz, global analyst at JATO Dynamics. “In addition to Elon Musk’s increasingly active role in politics, and the increased competition it is facing within the electric vehicle market, the brand is phasing out the existing version of the Model Y — its best-selling vehicle — in anticipation of the introduction of a new, refreshed version. Brands like Tesla, which have a relatively limited model line-up, are particularly vulnerable to registration declines during model transitions.”
Despite a rocky start to the year – with shares down nearly 30 per cent – Tesla stock rallied in New York on Monday, closing up 11.9 per cent at $278.39 following reports that Donald Trump’s proposed reciprocal tariffs may be less aggressive than previously expected.
With BYD eyeing a major European push this spring and growing scrutiny around Tesla’s leadership and brand perception, the global EV race is entering a decisive phase. For now, the momentum appears to be shifting in BYD’s favour.
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BYD pulls ahead of Tesla as it surpasses $100bn in EV revenues