Chinese electric vehicle giant BYD has widened its lead over Tesla, reporting record-breaking annual revenue of 777 billion yuan ($107 billion) for 2024.
This figure eclipsed Tesla’s $97.7 billion revenue from the previous year, further cementing BYD’s dominance in the electric vehicle industry. With soaring sales, cutting-edge technology, and strategic expansion, BYD has positioned itself as the world’s top EV manufacturer while Tesla faces mounting challenges, declining sales, and an increasingly distracted CEO.
In its earnings report released on Monday, BYD disclosed a net profit surge of 34% year-over-year to just over 40 billion yuan ($5.55 billion). This exceeded analysts’ expectations of $5.44 billion but remained below Tesla’s $7.1 billion net profit for 2024. BYD’s aggressive growth strategy and government-backed support have helped it outmaneuver Tesla in key markets, leaving Elon Musk’s company struggling to maintain its position in the EV race.
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BYD’s sales dominance has been evident for months. In January, it sold nearly twice as many EVs as Tesla, which suffered an 11% year-over-year decline. By early December, BYD had already exceeded its annual target, selling more than 3.7 million cars in 11 months and surpassing its 3.6 million goal with time to spare. By year-end, the Chinese automaker had delivered an astonishing 4.27 million electric vehicles, a record-breaking feat that has solidified its place at the top of the EV industry.
Meanwhile, Tesla’s trajectory took a sharp downturn. The company delivered 1.79 million vehicles in 2024, marking its first annual sales decline in over a decade. This was a 1% drop from the 1.81 million cars sold in 2023, a worrying signal for a company that once prided itself on exponential growth. Even a record-breaking fourth quarter—where Tesla delivered 495,570 vehicles—was not enough to reverse the downward trend.
Tesla’s struggles can largely be attributed to a combination of increased competition, supply chain disruptions, high interest rates that have made car financing more expensive, and Musk’s own divided focus. The company has also faced slowing demand for its vehicles, even after engaging in aggressive price cuts throughout 2023 and 2024. While these price reductions helped boost sales in some quarters, they also squeezed Tesla’s profit margins.
BYD Outpaces Tesla in Charging Innovation
While Tesla has historically led the EV industry in innovation, BYD is now challenging its technological supremacy. Last week, the Chinese automaker introduced a groundbreaking 1,000 kW fast charger that can add nearly 250 miles of range to an electric vehicle in just five minutes. This is four times more powerful than Tesla’s current 250 kW Superchargers, which require 15 minutes to add 200 miles of range.
Tesla has responded by announcing plans to roll out 500 kW chargers later this year, but it remains a step behind BYD’s advancements. The charging speed gap underscores how BYD is pushing the boundaries of EV technology, while Tesla appears to be playing catch-up.
Tesla’s Troubles Deepen: Backlash Against Musk, Stock Crash, and Production Woes
Beyond competition with BYD, Tesla has been battling internal turmoil, financial losses, and growing dissatisfaction with Musk’s leadership.
At the start of 2025, Tesla found itself embroiled in controversy as Musk’s deepening tie with the far-right wing led to massive backlash. The billionaire was appointed by U.S. President Donald Trump, to lead the Department of Government Efficiency (DOGE), designed to cut government waste. Musk’s politics, especially his support for Trump, has spilled over into Tesla’s reputation, with facilities across the United States and Europe facing vandalism, arson attacks, and calls for boycotts. Investors, once confident in Musk’s vision, have grown increasingly skeptical of his leadership.
Tesla’s stock has plummeted by more than 50% over the past three months, with JPMorgan analysts slashing their price target to $135. While the stock saw a brief 10% surge on Monday after Musk called an emergency all-hands meeting with Tesla employees, there is little clarity on how the company plans to regain its footing.
Adding to its troubles, Tesla’s production capabilities have been hindered by supply chain disruptions and a slowdown at its Gigafactories. The company has struggled to ramp up production of its long-promised Cybertruck, which has faced delays, technical issues, and underwhelming demand. Meanwhile, its once-dominant Model 3 and Model Y are now facing increasing competition from cheaper, high-quality Chinese EVs, particularly from BYD.
No Clear Strategy Yet for Tesla’s Comeback
While Tesla is in dire need of strategic redirection, Musk appears increasingly occupied with his other ventures—particularly X and his ambitious but troubled AI project, xAI. Rather than focusing on Tesla’s competitive decline, Musk is devoting much time to DOGE.
This has left Tesla without a clear roadmap for reclaiming its position as the top EV manufacturer. Unlike in past crises, where Musk took an active role in reshaping Tesla’s future—such as the aggressive push for mass production at Gigafactories or the rapid expansion of Supercharger networks—he has yet to present a compelling plan to counter BYD’s dominance.
BYD’s Expansion and the Threat of Trade Barriers
Despite BYD’s impressive growth, the company still faces hurdles in its global expansion efforts. Governments in various markets have taken steps to curb Chinese EV imports, with Russia imposing import taxes, the United States maintaining high tariffs, and the European Union considering similar protective measures.
BYD’s Executive Vice President, Stella Li, dismissed concerns over these trade barriers, arguing that such policies would ultimately backfire. Speaking to The Sunday Times of London, she stated: “The tariffs will have the opposite effect and weaken local industries.”
She also pushed back against allegations that BYD has benefitted from excessive state subsidies, shifting the focus instead to what she described as the failure of European automakers to keep pace with Chinese brands.
“Our car is more stylish than any European-designed cars,” she said. “Our car is more intelligent.”
BYD’s rise coincides with the collapse of European EV battery maker Northvolt, which filed for bankruptcy earlier this month. Once seen as Europe’s best hope for competing with Asian battery manufacturers, Northvolt cited rising capital costs, geopolitical instability, supply chain disruptions, and fluctuating demand as the primary reasons for its downfall.