Chinese electric vehicle manufacturer BYD surpassed American electric vehicle manufacturer Tesla in annual sales for the first time last year, underscoring its competitiveness in light of the United States' tariff imposition on imported cars. With minimal dependence on exports to the United States, BYD is not significantly affected by the tariffs imposed by the Donald Trump administration. Additionally, Tesla's struggles with slowing sales and risks associated with Chief Executive Officer Elon Musk may present opportunities for BYD.
According to industry sources on the 1st, BYD aims to sell 5.5 million vehicles globally this year. Excluding China, the goal for overseas sales is approximately 800,000 units. This marks nearly a doubling in scale compared to last year (417,204 units). Last year, BYD's global electric vehicle sales volume increased by 43.4% year-on-year to 4.137 million units, more than double that of Tesla (1.789 million units). In terms of market share, BYD is first with 23.5%, while Tesla holds 10.1%.
BYD surpassed Tesla's revenues for the first time based on overwhelming sales figures. Last year, BYD's revenue increased by 29% year-on-year to $107 billion (approximately 157.57 trillion won). Tesla's revenue for the previous year was $98 billion (approximately 144.31 trillion won). BYD became the first corporation among global electric vehicle manufacturers to surpass annual revenue of $100 billion.
BYD's growth is expected to accelerate due to the tariff imposition on imported cars that U.S. President Donald Trump has announced. With a solid domestic market in China and a diversified export strategy, BYD is not significantly impacted by tariffs. Automakers from South Korea, Japan, and Germany are concerned about supply chain disruptions and price increases stemming from the tariffs.
American corporations like Tesla are relatively free from tariffs; however, the prices of vehicle components sourced overseas may increase. Tesla has a system in place where vehicles sold in each country are produced locally. While vehicles sold in the U.S. are manufactured entirely in California and Texas, a significant portion of components like motors and raw materials are imported from Canada and Mexico, making cost increases due to tariffs unavoidable.
The management uncertainties surrounding Tesla are growing. A shortage of new vehicles, aging models, and public dissatisfaction with CEO Elon Musk are contributing to a deepening trend of poor performance. For the first time last year, Tesla experienced a decline in global sales, and in this year, there has been a sharp drop in sales in the European market. Excessive political interference, such as statements supporting far-right parties, is believed to have impacted this situation.
BYD is aggressively investing in multiple areas, including not only pure electric vehicles but also plug-in hybrid electric vehicles (PHEV); batteries; and charging platforms, thereby expanding its footprint. BYD recently announced a technology that allows a vehicle to travel 470 km on just a 5-minute charge, shocking the automotive industry. BYD's investment in research and development increased by 36% year-on-year to 54.2 billion yuan (approximately 11.4 trillion won), with more than 100,000 of its 900,000 total employees dedicated to research and development.