The biggest electric car battle that awaits 2025
Tesla electric cars enjoy a cult status in many parts of the world but BYD has managed to create inroads into several markets outside of China to raise the stakes in the EV game
Tesla and BYD have been gunning for the electric vehicle crown for some time now. But the stakes are all set to get higher still come 2025. Who will come out on top and who will have to walk away with the consolation prize? The 2024 round has not yet been decided yet but both Tesla and BYD have been firing on all cylinders through the course of the past 12 months. While BYD offers both plug-in hybrids as well as all-battery models as against Tesla's electric-only lineup, it only recently began its global expansion project. Some dub it a ‘David vs Goliath’ battle but the question really is which is which?
BYD is China's leading new-energy vehicle (NEV) company and has a formidable say in its home market which is also the world's largest automobile and EV market. Its recent expansion plans have helped it accelerate sales of its models even though it has no presence in the United States yet. From January to November of 2024, the company has managed to deliver more units than it had in January to November period of 2023. Analysts are now predicting a record Q4 2024 for the company. But will it be enough to scrape past Tesla?
Often credited for creating a massive lead against established automobile companies, Tesla has been the nearly undisputed EV leader of the world in recent years. But it has not faced a challenge as big as BYD in recent years either. When numbers of PHEVs and EVs are combined, BYD sold twice as many units in 2022 as Tesla did. More significantly, for EVs alone, BYD had managed to sell more than Tesla in Q3 of 2023. But while Tesla staged a comeback and remains ahead, is it a lead it can hold on to?
BYD Overtakes Tesla, With Other Chinese EV Makers Close Behind
BYD Seal eIectric car on display during the Japan Mobility Show 2023 on October 25, 2023 in Tokyo
BYD has overtaken Tesla as the world’s biggest selling electric vehicle maker, and other Chinese manufacturers will soon join it as they lead the electric revolution at the expense of their Western competitors.
“We believe BYD and other leading Chinese [manufacturers] are set to conquer the world market with high-tech, low-cost EVs for the masses, hereby accelerating global EV adoption,” investment bank UBS said in a report. UBS and other experts said only Tesla can keep pace with the Chinese. Europe will be the main target and exclude the U.S., at least for now, according to the Wall Street Journal.
“Western countries are getting anxious about cheaper Chinese EVs flooding their markets. Europe has launched an anti-subsidy probe into EVs from China, while the Biden administration is considering raising tariffs on Chinese EVs,” said the WSJ’s Heard on the Street columnist Jacky Wong. No Chinese EVs are sold in the U.S. because of rules excluding batteries and other components produced by Chinese manufacturers from its supply chain under the Inflation Reduction Act. BYD accelerated past Tesla to claim the title of the world’s biggest seller of EVs in 2023’s fourth quarter, selling about 530,000, beating Tesla’s 485,000.
Here’s what you need to know about BYD, the Chinese EV giant that just overtook Tesla
Security guards stand at the BYD booth at the Auto Shanghai show, in Shanghai, China April 19, 2023
BYD overtook Tesla as the world’s top seller of electric vehicles (EV) at the end of last year, crowning an extraordinary rise for the Chinese carmaker. It delivered more fully electric cars than Tesla for the first time in the three-month period to December 31, and slashed the sales lead held by Elon Musk’s company over the year as a whole.
So how did a little-known Chinese battery maker grow so quickly to become Tesla’s biggest rival? Based in the Chinese megacity of Shenzhen, BYD was founded in 1995 by Wang Chuanfu, a low-key former academic who still runs the company. Wang says the letters BYD don’t stand for anything in particular. He said he chose a “rather strange” name to set it apart from other startups. It is China’s top EV producer and exports electric taxis, buses and other vehicles to the rest of the world, including Europe, South America, Southeast Asia and the Middle East. Unlike Tesla (TSLA), it also makes plug-in hybrids, Israel and Thailand currently count as BYD’s major overseas markets, where the Chinese company ranks number one in EV sales.
Its best-selling passenger cars are the Qin and Song models. The Qin is a compact sedan available as a plug-in hybrid or an all-electric car. The BYD Song is a series of compact crossover SUVs. Compared to Tesla, BYD is known for offering more affordable cars, which helped it attract a wider group of consumers. Its entry-level model sells in China for just over $10,000; the cheapest Tesla Model 3 costs more than $32,000. BYD’s passenger cars are not yet available in the United States. But its electric buses — made in Lancaster, California — are sold in the country.
It's BYD's World and Tesla Is Just Trying To Hold On, Experts Say
A BYD car is seen on a display stand on the first day of the British Motor Show at Farnborough International Exhibition Centre on August 17, 2023 in Farnborough, England
Tesla Motors, for the past decade, has dominated electric vehicles sales in the U.S. and globally, not only by selling the most EVs, but also by selling the most popular ones. That changed at the end of last year, with Chinese rival BYD taking over that top sales spot, in both hybrids and EVs.
"Fifteen years ago, Tesla was converting a Lotus roadster into an electric vehicle and now look at them. Certainly, you'd be crazy to write off a company like that, but could they have done anything different [to keep ahead of BYD]? Probably not," Dan Hearsch, Americas leader of the automotive and industrial practice of the global consulting firm AlixPartners told Newsweek. BYD sold more new energy vehicles (EVs and hybrid) globally than Tesla in 2023, though none of its dozen or so vehicles could take down the Model Y alone, which is sold in the three biggest markets: China, Europe and North America. However, BYD is making inroads in Europe and has America in its sights, putting it further out of the reach of Tesla, and everyone else.
"BYD sold about 3 million vehicles last year, 1.6 million EVs and 1.4 million hybrids, and will be adding a few million over the next few years. In the fourth quarter BYD built and sold more EVs than Tesla," Michael Dunne, CEO of global consulting firm Dunne Insights told Newsweek. "Tesla is embraced as a phenomenon, but they're still expensive. BYD has many models under $30,000."
BYD is taking the auto market by storm, forcing legacy rivals to make desperate moves
China’s EV leaders are rapidly gaining market share from legacy automakers. And it’s not only in China. BYD and other Chinese EV makers are expanding overseas to drive growth. Facing a shrinking market share, legacy rivals are taking drastic measures to keep up.
As sales continue surging domestically, BYD has no plans to slow down. BYD sold a record over 500,000 NEVs (EVs and PHEVs) in November, its second straight month with over half a million vehicle sales. Its cheapest electric car, the Seagull, was once again the best-selling vehicle in China last month. And that includes gas-powered models. BYD’s Seagull EV starts at just under $10,000 (69,800 yuan) in China as one of the most affordable options.
The sudden shift to EVs in China has caught several legacy rivals off guard. Many, including Volkswagen, Toyota, Nissan, Honda, Hyundai, Ford, GM, and others, are adjusting their plans after losing market share. After dominating in its home market, China’s EV leaders are aggressively pushing for more overseas market share. BYD has launched some of its most popular EVs, like the Dolphin, Atto 3 SUV, and low-cost Seagull (known as the Dolphin Mini overseas), in key overseas markets.
China's BYD chalks up new record in EV sales, narrows gap with Tesla
China’s BYD Co. enjoyed a year-end surge to push total sales to 4.25 million passenger cars last year, narrowing its gap with Tesla Inc. as the two vie for the crown of top-selling electric-vehicle maker of 2024.
The Shenzhen-based carmaker, which stopped making vehicles entirely powered by fossil fuels in 2022, hit a new monthly sales record in December, spurred on by subsidies and offering extra incentives to buyers. BYD sold 509,440 plug-in hybrid and pure-electric passenger vehicles in December, the company said Wednesday. The figure includes 207,734 EVs, taking the annual tally of battery-powered car sales to 1.76 million. Overall annual sales increased 41 per cent year-on-year.
The rise of BYD as a best-selling car brand stands in contrast to the turmoil facing a growing number of legacy auto giants like Nissan Motor Co., Volkswagen AG and Stellantis NV. Western car brands have faced tumbling sales in China, while also lagging behind on the EV transition.
BYD chalks up new record EV sales as it narrows gap with Tesla
BYD hit a new monthly sales record in December 2024, spurred on by subsidies and offering extra incentives to buyers
China’s BYD enjoyed a year-end surge to push total sales to 4.25 million passenger cars last year, narrowing its gap with Tesla as the two vie for the crown of top-selling electric vehicle (EV) maker of 2024.
The Shenzhen-based carmaker, which stopped making vehicles entirely powered by fossil fuels in 2022, hit a new monthly sales record in December 2024, spurred on by subsidies and offering extra incentives to buyers. BYD sold 509,440 plug-in hybrid and pure-electric passenger vehicles in December, the company said on Jan 1. The figure includes 207,734 EVs, taking the annual tally of battery-powered car sales to 1.76 million. Overall annual sales increased 41 per cent year on year.
The rise of BYD as a best-selling car brand stands in contrast to the turmoil facing a growing number of legacy auto giants such as Nissan Motor, Volkswagen and Stellantis. Western car brands have faced tumbling sales in China while also lagging behind on the EV transition.
China's BYD closes in on Tesla as sales jump
The Chinese EV maker saw record sales in December
Chinese car maker BYD saw its sales jump at the end of last year, as it competes with Tesla to be the world's best-selling electric vehicle (EV) maker of 2024.
The company says it sold 207,734 EVs in December, taking its annual total to 1.76 million, as subsidies and discounts helped attract customers. It comes as Tesla is due to announce its own quarterly sales figures later on Thursday.
The US electric car maker maintained a slim lead in EV sales over BYD in the previous quarter but the Shenzhen-based firm has been narrowing the gap.
BYD chalks up new record as it narrows EV sales gap with Tesla
The rise of BYD as a best-selling car brand stands in contrast to the turmoil facing a growing number of legacy auto giants
CHINA’S BYD enjoyed a year-end surge to push total sales to 4.25 million passenger cars last year, narrowing its gap with Tesla as the two vie for the crown of top-selling electric-vehicle (EV) maker of 2024.
The Shenzhen-based carmaker, which stopped making vehicles entirely powered by fossil fuels in 2022, hit a new monthly sales record in December, spurred on by subsidies and offering extra incentives to buyers.
BYD sold 509,440 plug-in hybrid and pure-electric passenger vehicles in December, the company said on Wednesday (Jan 1). The figure includes 207,734 EVs, taking the annual tally of battery-powered car sales to 1.76 million. Overall annual sales increased 41 per cent year on year.
Tesla Inc
Gigafactory Texas, Tesla's headquarters, just outside of Austin, Texas
Tesla, Inc. (/ˈtɛslə/ TESS-lə or /ˈtɛzlə/ TEZ-lə[a]) is an American multinational automotive and clean energy company. Headquartered in Austin, Texas, it designs, manufactures and sells battery electric vehicles (BEVs), stationary battery energy storage devices from home to grid-scale, solar panels and solar shingles, and related products and services.
Tesla was founded in July 2003 by Martin Eberhard and Marc Tarpenning as Tesla Motors. Its name is a tribute to inventor and electrical engineer Nikola Tesla. In February 2004, Elon Musk joined as Tesla's largest shareholder; in 2008, he was named chief executive officer. In 2008, the company began production of its first car model, the Roadster sports car, followed by the Model S sedan in 2012, the Model X SUV in 2015, the Model 3 sedan in 2017, the Model Y crossover in 2020, the Tesla Semi truck in 2022 and the Cybertruck pickup truck in 2023. In June 2021, the Model 3 became the first electric car to sell 1 million units globally.[6] In 2023, the Model Y was the best-selling vehicle, of any kind, globally. In January 2024, the Model Y became the best-selling BEV in history.
Tesla is one of the world's most valuable companies in terms of market capitalization. Starting in July 2020, it has been the world's most valuable automaker. From October 2021 to March 2022, Tesla was a trillion-dollar company, the seventh U.S. company to do so, and has been so again since November 2024. In 2023, the company led the battery electric vehicle market, with 19.9% share. Also in 2023, the company was ranked 69th in the Forbes Global 2000.
BYD Auto
BYD Auto Co., Ltd
BYD Auto Co., Ltd. (Chinese: 比亚迪汽车; pinyin: Bǐyàdí Qìchē) is the main automotive subsidiary and brand of BYD Company, a publicly listed Chinese multinational manufacturing company. It manufactures passenger battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), collectively known as new energy vehicles (NEVs) in China. It also produces electric buses and trucks. The company sells its vehicles under the main BYD brand and high-end vehicles under its Denza, Yangwang and Fangchengbao brands.
BYD Auto was established in January 2003 by Wang Chuanfu, the founder of BYD Company, following the acquisition of Xi'an Qinchuan Automobile. The first car designed by BYD, the BYD F3, began production in 2005. In 2008, BYD launched its first plug-in hybrid electric vehicle, the BYD F3DM, followed by the BYD e6, its first battery electric vehicle, in 2009.
BYD Auto has experienced substantial sales growth since 2020, driven by the increasing market share of new energy vehicles in China. Since 2021, the company has expanded sales of electric passenger cars into overseas markets, mainly to Europe, Southeast Asia, Oceania and Latin America. In March 2022, BYD ended production of purely internal combustion engined cars to focus on new energy vehicles. In the fourth quarter of 2023, BYD was the top-selling battery electric vehicle manufacturer in the world ahead of Tesla.[8] BYD was also the best-selling car brand in China in 2023, overtaking Volkswagen, which had held the title since the liberalisation of the Chinese automotive industry.[9] BYD is also the third most valuable car manufacturer in the world, based on market capitalization.
Nio Inc
Nio House in Beijing, China
Nio Inc. (Chinese: 蔚来; pinyin: Wèilái; stylized as NIO) is a Chinese multinational automobile manufacturer headquartered in Shanghai, specializing in designing and developing electric vehicles. The company was established in 2014 and adopted its current name in 2016. In 2018, Nio filed for an initial public offering on the New York Stock Exchange. The company expanded its sales to the European market in 2021. As of 2023, Nio has two manufacturing plants in Hefei, Anhui Province, China, in collaboration with state-owned vehicle manufacturer JAC Group.
The company is notable for developing and operating battery-swapping stations for its vehicles, as an alternative to conventional charging stations. It operates over 1,300 battery swap stations in China.[5] It also develops semi-autonomous and autonomous vehicle technologies. Nio has participated in Formula E racing since 2014. In 2024, Nio established a new electric car brand called Onvo, targeting the mainstream market.
After the brand launch on November 21, 2016 in the Saatchi Gallery in London, England, several companies invested in Nio, including Tencent, Temasek, Sequoia, Lenovo and TPG. Its first model, the Nio EP9 sports car, debuted the same day.
Li Auto
Li Auto R&D base in Gaoliying, Beijing
Li Auto Inc. (Chinese: 理想汽车; pinyin: Lǐxiǎng Qìchē; lit. 'ideal car') is a Chinese electric vehicle manufacturer headquartered in Beijing, with manufacturing facilities in Changzhou. Founded by Li Xiang in 2015, the company mainly builds electric vehicles that use range extenders for a power supply.[3] Li Auto has vehicle manufacturing, engineering, and design services located in Changzhou, Jiangsu with corporate headquarters and research and development located in Beijing
In 2015, Li Xiang, founder of Chinese website PCPop and automotive website Autohome.com.cn, created a company called Beijing Chehejia Information Technology (Chehejia translates as "Car and Home"). It started its operations by developing and producing low-speed EVs that targeted car-sharing and ride-hailing services. In 2018, Chehejia reached an agreement for a joint venture with DiDi, China’s largest ride-hailing service company, but the plan collapsed shortly afterward. In the first half of 2018, Chehejia abandoned the low-speed EV project due to the lack of support from the Chinese central government for legalizing the EV category.
In 2019, the holding company Chehejia Technologies, based in the Cayman Islands, rebranded itself as Leading Ideal Inc. The following year, it shortened the name to Li Auto, and the company was renamed Li Auto Inc. In Chinese, the brand is commonly known as Lixiang (理想). Li Auto Beijing manufacturing base in Shiyuan, Shunyi District, Beijing Li Auto unveiled its first model named the Li One in April 2019, with production beginning in November of the same year.
