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Chinese electric vehicle (EV) manufacturer BYD achieved a new milestone in the third quarter, with revenue that surpassed global EV leader Tesla’s for the first time. BYD reported revenue of 201.12 billion yuan ($28.24 billion) for the quarter ending September 30, a 24% increase year-over-year, exceeding Tesla’s $25.18 billion revenue for the same period.
This achievement comes as the Chinese EV giant navigates a challenging market, outperforming Tesla even as the EV industry in mainland China faces slowing demand. BYD saw a record-breaking August in passenger vehicle sales, bolstering its strong third-quarter performance.
While Tesla’s lineup consists entirely of battery electric vehicles, BYD has a significant portion of sales from hybrid models, appealing to a broad range of customers. However, Tesla still maintains an edge in profitability, with a net profit of $2.18 billion for Q3, a 16.2% rise from last year. BYD reported a profit of 11.6 billion yuan, an 11.5% increase for the same period.
Despite BYD’s strong quarterly performance, Tesla remains ahead in year-to-date sales, with $71.98 billion in total revenue compared to BYD’s $70.53 billion.
As one of China’s top EV manufacturers, BYD competes intensely in its home market—the world’s largest for EVs—where Tesla’s Model Y continues to dominate as the best-selling battery electric car, followed closely by BYD’s Seagull.
The competition between BYD and Tesla is set to intensify with new European Union tariffs on Chinese EVs, raising duties to as much as 45.3%. Tesla and BYD are taking steps to offset these tariffs by ramping up their European production. Tesla recently received approval to double its Berlin plant capacity, while BYD has committed $1 billion to a new plant in Turkey to serve the EU market more effectively.
BYD’s accomplishment in outpacing Tesla in quarterly revenue marks a significant moment for the Chinese automaker as it gains ground in the global EV market.
