BYD Surpasses Tesla in Annual Revenue Amid Rising Competition

BYD’s annual revenue for 2024 has exceeded Tesla’s, reaching 777 billion yuan due to increased hybrid vehicle sales. BYD is also launching lower-priced models to rival Tesla’s offerings, while facing economic challenges in China. Additionally, the company announced advancements in battery technology and driver-assistance features, contributing to its growth in the electric vehicle market.

Chinese electric vehicle manufacturer BYD has reported a substantial increase in annual revenue for 2024, surpassing that of its competitor Tesla. The Shenzhen-based company recorded a revenue rise of 29%, reaching 777 billion yuan (approximately $107 billion or £83 billion), which exceeds Tesla’s reported revenue of $97.7 billion. Growth was largely fueled by the sales of its hybrid vehicles.

In a strategic move, BYD has introduced a lower-priced model aimed at competing with Tesla’s Model 3, a long-standing leader in the Chinese electric vehicle market. The introduction of this model comes amid global challenges for Tesla, including backlash over CEO Elon Musk’s affiliations with former U.S. President Donald Trump and the imposition of tariffs on Chinese car manufacturers in Western nations.

BYD sold about 1.76 million electric vehicles last year, closely trailing Tesla’s 1.79 million. However, when factoring in hybrid sales, BYD’s total vehicles sold reached a remarkable 4.3 million globally for the year 2024. The new Qin L model from BYD is set at a competitive starting price of 119,800 yuan, significantly lower than Tesla’s comparable Model 3, priced at 235,500 yuan.

Economic adversity, including a property crisis, a slowdown in growth, and high local government debt, is compelling Chinese consumers to exercise caution in spending. Notably, last week, BYD’s founder, Wang Chuanfu, unveiled new battery charging technology claimed to achieve a full charge in just five minutes, contrasting with Tesla’s charging time of approximately 15 minutes using its supercharger system.

In another significant development, BYD announced that its advanced driver-assistance technology, referred to as “God’s Eye,” will be made available at no additional cost in all its models. Shares of BYD, which has investment backing from U.S. investor Warren Buffett, have surged over 50% this year. Amidst these developments, Musk’s involvement in political matters, including support for controversial groups and critiques of international politicians, has fueled further backlash against him and Tesla, while Chinese EV firms face tariff challenges across numerous markets, including the U.S. and the European Union.

In conclusion, BYD has successfully surpassed Tesla in annual revenue for 2024 and remains competitive in the electric vehicle market with innovative offerings and strategic pricing. While Musk’s political affiliations have sparked controversy for Tesla, BYD capitalizes on advancements in technology and a strong vehicle lineup to excel. As it navigates global economic challenges and tariffs, BYD’s growth signifies a powerful shift in the electric vehicle sector, positioning it as a formidable competitor to Tesla.

Original Source: www.bbc.com