The Headline Hype: Did BYD Really Overtake Tesla in 2024 vehicle sales and revenue ?
- E for mobility
- May 7
- 5 min read
The electric vehicle (EV) market has been buzzing with headlines claiming that Chinese automaker BYD has surpassed Tesla in 2024 revenues. But how much of this narrative holds up under scrutiny? In this deep dive, we’ll break down the sales and revenue figures of BYD and Tesla for 2024, using detailed data and charts to separate fact from misleading headlines. Let’s get to the numbers and see what they really tell us about the competition between these two EV giants.
The Headline Hype: Did BYD Really Overtake Tesla?
Headlines across various outlets have suggested that BYD’s 2024 performance has eclipsed Tesla’s, particularly in terms of revenue. At first glance, the numbers seem to support this: BYD reported a total revenue of $107 billion, while Tesla’s total revenue came in at $97.7 billion—a difference of about $9.3 billion. On the surface, it looks like BYD has taken the lead. However, as we’ll see, this comparison doesn’t tell the full story.
The narrative becomes even more intriguing when we look at sales. BYD sold a staggering 4,272,145 new energy vehicles (NEVs) in 2024, while Tesla delivered 1,789,226 battery electric vehicles (BEVs). These figures have fueled the perception that BYD is dominating the EV market. But let’s dig deeper into the specifics of these sales and revenue figures to understand what’s really happening.
Sales Breakdown: NEVs vs. BEVs
To make a fair comparison, we need to understand the types of vehicles each company is selling. BYD’s NEV category includes both battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). Tesla, on the other hand, exclusively produces BEVs. Here’s how the sales numbers break down for 2024:
BYD NEV Sales: 4,272,145 units
BYD BEV Sales: 1,764,992 units (41.3% of total NEV sales)
BYD PHEV Sales: 2,485,378 units (58.2% of total NEV sales)
Tesla BEV Sales: 1,789,226 units
The chart below visualizes this comparison:
From the chart, it’s clear that BYD’s total NEV sales far exceed Tesla’s BEV sales. However, when we focus solely on BEVs—the category where Tesla competes—BYD sold 1,764,992 units, while Tesla delivered 1,789,226 units. Tesla actually edges out BYD in BEV sales by about 24,234 units, maintaining its lead in this specific segment.
This distinction is critical because BEVs and PHEVs serve different market needs. BEVs are fully electric, relying entirely on battery power, while PHEVs combine electric motors with internal combustion engines, offering a hybrid solution. Comparing BYD’s NEV sales directly to Tesla’s BEV sales is like comparing apples and oranges—it’s not a fair metric for assessing their performance in the same market segment.
Revenue Breakdown: A Closer Look
Now let’s turn to the revenue figures, which have been the focal point of many headlines. At first glance, BYD’s $107 billion in total revenue does surpass Tesla’s $97.7 billion. But both companies generate revenue from more than just vehicle sales, and their business models differ significantly. Let’s break down the revenue sources to get a clearer picture:
BYD Total Revenue: $107 billion
Automotive and Related Products (BYD Auto): $85.6 billion (79.4% of total revenue)
BEV Revenue (Estimated): $48 billion
Handset Components and Assembly Services (BYD Electronics): $21.9 billion (20.5% of total revenue)
Tesla Total Revenue: $97.7 billion
BEV Revenue: $74 billion (75.7% of total revenue)
Energy Generation, Services, and Other Revenue: $22.53 billion (23% of total revenue)
The chart below provides a visual representation of this revenue breakdown:
When we focus on automotive revenue, BYD’s $85.6 billion falls short of Tesla’s $97.7 billion. More specifically, if we isolate BEV revenue, Tesla’s $74 billion significantly outpaces BYD’s estimated $48 billion. This gap highlights a key point: while BYD’s overall revenue may be higher due to its diversified business (including its electronics division), Tesla remains the leader in BEV revenue.
Growth Trends: A Tale of Two Companies
The 2024 figures also reveal stark differences in the growth trajectories of BYD and Tesla:
BYD Growth:
NEV sales increased by 41.26% year-over-year.
BEV sales grew by 12.08%, while PHEV sales surged by 72.83%.
Total revenue rose by 29% to $107 billion.
Tesla Growth:
BEV sales decreased by 1.1% year-over-year.
Total revenue grew by a modest 1% to $97.7 billion.
BYD’s impressive growth, particularly in the PHEV segment, reflects its strong foothold in markets like China, where hybrid vehicles are popular due to range anxiety and infrastructure challenges. Tesla, however, faced headwinds in 2024, including a decline in sales in key markets like China mostly due to the osborne effect (Phase out of old Model Y to welcome the new "Juniper") and a drop in brand favorability linked to CEO Elon Musk’s political activities. Despite these challenges, Tesla’s energy generation and storage segment grew significantly, contributing $10 billion in revenue (up 67% from 2023).
The Subsidy Factor
Another aspect worth considering is the role of government support. Both BYD and Tesla have benefited from financial incentives, such as loans at favorable interest rates. However, research suggests that Chinese companies like BYD may receive more direct subsidies, giving them a competitive edge in terms of pricing and production costs. This disparity could explain some of BYD’s ability to scale production and offer lower-priced vehicles, particularly in the PHEV segment.
What the Headlines Miss
The narrative that “BYD has surpassed Tesla” oversimplifies a complex story. While BYD’s total revenue and NEV sales are indeed higher, Tesla remains the leader in the BEV segment—both in terms of sales volume and revenue. BYD’s diversified revenue streams, including its electronics business, inflate its total revenue figures, but this doesn’t reflect a direct win in the EV market. A more apples-to-apples comparison shows that Tesla’s BEV revenue of $74 billion far exceeds BYD’s $48 billion, and Tesla sold more BEVs in 2024.
The charts and data tell a nuanced story: BYD is a formidable competitor with a broader product portfolio, but Tesla still holds a strong position in the pure EV market. Headlines focusing solely on total revenue miss these critical distinctions, potentially misleading readers about the true state of the competition.
Looking Ahead: The Road to 2025
As we move into 2025, the competition between BYD and Tesla is set to intensify. BYD’s advancements in lithium iron phosphate (LFP) battery technology and its competitive pricing could help it gain further ground, particularly in markets where cost is a major factor. Tesla, meanwhile, will need to address its sales decline and brand perception challenges while continuing to innovate in areas like autonomous driving and energy storage.
For investors and EV enthusiasts, the key takeaway is to look beyond the headlines. BYD and Tesla are both strong players in the EV market, but their strengths lie in different areas. BYD’s growth in NEVs and its diversified business model make it a compelling player, while Tesla’s dominance in BEVs and its focus on technology innovation keep it at the forefront of the pure EV space.
Conclusion
The BYD vs. Tesla debate is far from black-and-white. While BYD’s 2024 performance is impressive, Tesla remains the leader in the BEV segment that it has long dominated. By breaking down the sales and revenue figures, we can see that the narrative of BYD overtaking Tesla is more nuanced than the headlines suggest. As the EV market continues to evolve, both companies will play pivotal roles in shaping the future of transportation—but for now, Tesla still holds the edge where it matters most.
What do you think about this comparison? Are you Team BYD or Team Tesla? Let us know in the comments below!
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