What is BYD? Chinese electric vehicle maker tops Tesla sales

Chinese electric vehicle maker BYD is making waves in the industry, having topped Elon Musk’s Tesla in sales and rolling out a new EV charging system that’s nearly as quick as filling up the gas tank. 

BYD, which is short for "Build Your Dreams," has experienced significant growth in sales for both its battery electric and hybrid vehicles. 

BYD vs. Tesla: What to know

By the numbers:

In 2024, BYD logged a record 777.1 billion yuan – or $107 billion – in revenue as its sales of battery electric and hybrid vehicles jumped 40%. For comparison, Tesla’s 2024 revenue was nearly $97.7 billion.

BYD’s net profit last year was about 40 billion yuan ($5.6 billion), up 34% from the year before.

What we know:

Nearly 80% of BYD's sales last year were related to its automotive businesses. China’s largest EV maker reported that it sold about 4.3 million pure electric and hybrid vehicles last year.

Nearly 29% of the company's sales were in markets outside Greater China, including Hong Kong and Taiwan, last year, up slightly from 27% the year before. The automaker has rapidly expanded its exports, though it has yet to try to sell in the U.S., where U.S. President Donald Trump has pledged to raise tariffs on car imports. 

BYD faces a 17% tariff on exports of EVs to the European Union.

The backstory:

The Chinese company started out making batteries and has been refining its battery and energy storage technology while building an auto empire that is expanding outside China. 

BYD’s earnings report late Monday coincided with its launch earlier this week of its Qin L EV sedan, a mid-sized model similar to Tesla's Model 3 but at just over half the price. 

Last week, BYD also unveiled its flash-chargers that can provide a full charge for its latest EVs within five to eight minutes, similar to the amount of time needed to fill a fuel tank. The automaker said it plans to build more than 4,000 of the new charging stations across China.

Dig deeper:

Charging times and limited ranges have been a major factor constraining the switch from gas and diesel vehicles to EVs, though Chinese drivers have embraced that change with the noted increase in sales last year. 

Big picture view:

In early January, Tesla said its sales dropped in 2024 – which was a first in more than a dozen years, as rivals such as BMW, Volkswagen and BYD gained market share with their competitive EVs. Several auto industry analysts have also pointed to Musk’s close association with Trump and with far-right causes globally. Tesla showrooms in the U.S. have been besieged by protesters and its vehicles vandalized on the street. 

The other side:

BYD has weaknesses as well, industry analyst Michael Dunne said in a recent report. He noted that JD Power’s 2024 China New Energy Vehicle Initial Quality Study ranked the BYD Seal and BYD Song Plus battery electrics at the bottom of its rankings.

"Manufacturing execs in the industry tell me it is next to impossible to increase output 10x in four years and not have quality issues," Dunne wrote in the report.

What's next:

As BYD and competitors introduce new models to compete with Tesla’s marketshare, Musk’s Tesla is reportedly designing a cheaper version of its Model Y and investing in autonomous driving software for mainland China, according to the Hong Kong-based South China Morning Post, citing two people with knowledge of the company’s thinking.