Tesla slips further behind Chinese competitor as BYD’s sales soar to $100bn

Chinese carmaker BYD has firmly positioned itself as the top challenger to Elon Musk’s Tesla, following a 29% surge in annual revenues that pushed sales beyond $100 billion (£77 billion) for the first time.

The Shenzhen-based company, which operates dozens of showrooms across the UK, generated 777.1 billion yuan ($107.2 billion) in revenue last year, surpassing Tesla’s $97.7 billion.

This marks the first time BYD has overtaken Tesla in full-year revenues, having previously edged ahead in quarterly results. The milestone further cements BYD’s status as a major global player in the electric vehicle market. Notably, Warren Buffett remains among its prominent investors.

The milestone comes just a week after BYD made headlines with claims of a breakthrough fast-charging system that can deliver a full charge in the time it takes to fill a petrol tank.

The new charger, which reportedly enables a vehicle to travel up to 470km (292 miles) after just five minutes of charging, helped propel BYD’s share price to a record high this month. Alongside its record-breaking annual revenue, the company also announced its highest-ever profits, up more than a third to 40.3 billion yuan (£4.3 billion).

BYD’s stock rose 3% on Monday and is up over 50% since the start of the year, solidifying its lead in China’s electric vehicle market—the largest in the world.

Despite these gains, BYD’s market valuation is still less than a fifth of Tesla’s, which stands at around $800 billion.

China has become the world’s largest market for battery electric vehicles, with homegrown companies like BYD investing heavily in mass-producing affordable EVs.

BYD sold 1,614 passenger cars in the UK last month, surpassing Tesla’s total of 1,458, according to data from the Society of Motor Manufacturers and Traders (SMMT).

This marked a 500% year-on-year increase for BYD, while Tesla’s sales declined by around 8%.

It was the first time BYD has outsold Tesla on a monthly basis in the UK, coinciding with growing backlash against Tesla CEO Elon Musk, whose close ties to the US president have alienated some of the brand’s traditional customer base.

In response to slowing demand, Tesla launched a price war late last year to stimulate sales, as higher interest rates pushed up financing costs and stricter rules on U.S. subsidies made electric vehicles less affordable for many buyers.