BYD, the Chinese EV giant, passed a significant milestone on Monday: it overtook Elon Musk’s Tesla in annual revenue. BYD generated 777.1 billion yuan ($107.1 billion) in annual revenue, up 29%. Not only is that past the $100 billion threshold, it’s greater than Tesla’s 2024 revenue of $97.7 billion.
It’s been a good few months for BYD. Shares in the company are up by around 50% so far this year, part of a broader rally in the Chinese tech sector. Tesla’s shares, on the other hand, are down 26.6% in 2025, due to a stale product lineup, Musk’s political controversies, and broader macroeconomic worries around U.S. tariffs.
But a closer look at BYD’s numbers reveal that the impressive Chinese EV giant still needs to do more to truly topple Tesla from the top of the EV sector.
First, about 20.5% of BYD’s 2024 revenue was generated from its mobile handset business. BYD’s auto business generated around 617.4 billion yuan ($85.1 billion) of revenue last year–lower than Tesla’s 2024 overall revenue. (Both BYD and Tesla’s autos revenue include more than just selling the actual cars, such as revenue from batteries for example.)
But it’s not only that. Another difference is that BYD sells both plug-in hybrids and battery electric vehicles, unlike the purely BEV-focused Tesla. While BYD sold 4.3 million cars last year, just 1.76 million of them were BEVs, below Tesla’s figure of 1.79 million BEVs sold.
Finally, Tesla remains more profitable than BYD. The U.S. automaker earned $7.1 billion in net income last year, compared to 40.3 billion yuan ($5.6 billion) at its Chinese competitor.
China
Yet even if BYD still hasn’t quite overtaken Tesla, its narrative is currently more positive than Elon Musk’s EV maker.
BYD dominates China’s car market, the world’s largest and most competitive, at least when it comes to electric cars. BYD’s sales rose year-on-year in the first two months of 2025; Tesla’s, in contrast, fell over the same period, though that may have been due to a production pause ahead of a refreshed Model Y.
The company’s continued investment in R&D could also give it an edge, as picky consumers demand better features from their cars. According to its annual report, research and development expenses rose to 53.2 billion yuan ($7.3 billion), up from 39.6 billion yuan ($5.5 billion) the year before and significantly higher than Tesla’s $4.5 billion.
BYD recently introduced autonomous driving capabilities, similar to what Tesla offers, in its product line-up. Tesla, by comparison, is still struggling to roll out its “Full Self-Driving” package in China amid regulatory hurdles.
The company also recently unveiled new battery technology that can provide 470 kilometers of range after just five minutes of charging. The new technology will be rolled out in two upcoming models hitting next month, and the company is building 4,000 chargers that can support these new batteries across the country.
Global sales
Most of BYD’s sales–more than 80%—are in China. Yet overseas sales are growing: Last year, BYD generated 99.7 billion yuan ($13.7 billion) from exports, up from 72.4 billion yuan ($9.9 billion) the year before.
BYD is making inroads in markets like Southeast Asia, Latin America and Europe, thanks to its affordable EVs.
But the company’s overseas expansion also faces roadblocks. BYD is not present in the U.S. due to prohibitively high tariffs imposed on Chinese EVs. Europe has also hiked its tariffs on BYD, citing unfair levels of state subsidies.
In addition, the Financial Times recently reported that two of BYD’s factories are facing government scrutiny. According to the newspaper, Beijing is delaying approval of BYD’s Mexico plant due to fears that the company’s technology might leak to the U.S. And, separately, Brussels is reportedly probing whether BYD’s Hungary plant, which is slated to begin car production in October, may have received too much support from Beijing.
Still, Tesla faces its own challenges. The American carmaker’s sales are slumping in Europe and the U.S. due to the changeover of its best-selling Model Y, increased competition and potentially brand damage from Musk’s association with the Trump administration.
Investor sentiment reflects BYD and Tesla’s different narratives. BYD has a far lower valuation than Tesla, yet the carmaker’s share surge has added around $50 billion in market capitalization since the start of 2025.
Tesla, in contrast, has lost about $400 billion in value over the same period–more than twice the value of BYD.
This story was originally featured on Fortune.com
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