Chinese electric vehicle giant BYD has surpassed Tesla in annual revenue for 2024, marking a major milestone in the global EV industry. The Shenzhen-based automaker reported a 29% surge in revenue, reaching 777 billion yuan ($107 billion; £83 billion), outperforming Tesla’s $97.7 billion. A significant portion of BYD’s success has been attributed to strong sales of its hybrid vehicles, which continue to drive its market expansion.

BYD has also intensified competition by launching a more affordable electric model to challenge Tesla’s popular Model 3, which has long dominated the Chinese EV market. The company’s aggressive pricing strategy aims to attract cost-conscious consumers, especially amid China’s economic slowdown and increasing financial pressures on households.

Despite BYD and Tesla selling nearly the same number of pure EVs last year—1.76 million versus 1.79 million—BYD’s dominance becomes evident when hybrid sales are factored in. Including plug-in hybrids, BYD sold a record-breaking 4.3 million vehicles globally in 2024, making it a much larger player in the industry than its American rival.

On Sunday, BYD unveiled its latest challenger to Tesla, the Qin L model, which has a starting price of 119,800 yuan—significantly lower than the base Model 3, which costs 235,500 yuan in China. The move aligns with a broader push to cater to budget-conscious consumers, particularly as China faces economic headwinds such as a property crisis, slowing growth, and mounting local government debt.

BYD is also making strides in battery and driving technology. Founder Wang Chuanfu recently introduced new fast-charging technology that can fully charge an EV in just five minutes—significantly faster than Tesla’s supercharger system, which takes around 15 minutes. Additionally, in February, BYD announced that its advanced "God’s Eye" driver-assistance system would be offered for free across all its models, further boosting its appeal.

Meanwhile, Tesla is facing increasing scrutiny worldwide, partially due to CEO Elon Musk’s political entanglements. His appointment to the Trump administration’s Department for Government Efficiency has drawn criticism, as has his support for Germany’s far-right Alternative für Deutschland party. At the same time, Chinese EV manufacturers, including BYD, are encountering rising trade barriers, with Western countries imposing tariffs to limit their influence in global markets.