Hong Kong
CNN
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In the world of electric vehicles, there are Chinese companies that surpass Elon Musk’s Tesla. And it’s just beginning.
BYD, a Chinese EV champion based in Shenzhen, eclips Tesla with annual sales last year. Last week, it unveiled innovative battery charging technology, adding a 250-mile range in five minutes, surpassing Tesla’s supercharger and taking 15 minutes to add 200 miles. And last month, BYD launched “God’s Eye,” an advanced driver assistance system that rivals Tesla’s fully automated driving capabilities.
These are three examples of how BYD has pulled ahead of Tesla. Our once casually fired by masks now effectively outweigh Tesla in terms of sales, innovation and price competitiveness.
Tu Le, founder and managing director of consulting firm Sino Auto Insights, told CNN. “They are happy to push the envelope and set the pace around the world.”
BYD, which dominated the Chinese home market, the world’s largest automotive market, is beginning to expand worldwide with notable exceptions like the US, which are effectively banned by 100% tariffs on passenger cars.
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Founded in 1995 by Wang Chuanfu in China’s Shenzhen, BYD is the country’s No. 1 automaker. It exports electric taxis, buses and other vehicles to markets in Europe, South America, Southeast Asia and the Middle East.
In China, the Chinese Passenger Automobile Association said it accounted for 32% of total sales of new energy vehicles last year, far exceeding Tesla’s 6.1% market share, including the hybrid. (BYD manufactures both battery-powered cars and hybrids, while Tesla only manufactures fully electric cars that are powered by battery.)
BYD reported $107 billion in sales in 2024, a 29% jump from the previous year, with deliveries of 4.27 million cars, including hybrids. In comparison, Tesla had revenue of $97.7 billion in 2024, providing 1.79 million battery-powered vehicles. That annual delivery fell 1.1% for the first time last year.
BYD’s 1.76 million vehicles’ battery-powered EV cargo was slightly short of Tesla’s, but investors and analysts are bullish about the possibility of BYD expanding overseas. Most of BYD’s freight was delivered to domestic customers by exporting only 10% to overseas markets.
“We believe sales momentum will remain strong in 2025, and BYD believes it will be able to maintain leadership with the rollout of a new generation model with sophisticated driver assistance systems,” Morningstar senior equity analyst Vincent Sun wrote in a research note on Monday.
Many believe that Byd means “building your dreams,” but Wang said in an interview with Tencent that it didn’t mean that to begin with. He told the online interview program. The slogan “Build Your Dream” was later devised for marketing purposes.
BYD’s top selling passenger cars are QIN and Song models, covering a wide range of consumers that are affordable and based on the company’s reputation. The Qin, a compact sedan, is available as both a plug-in hybrid and a fully electric model, but the song consists of a lineup of compact crossover SUVs.
Unlike Tesla, which established itself as a premium brand, BYD has successfully made its price accessibility. That entry-level model starts in China for just over $10,000. This is just a small portion of the cost of Tesla’s cheapest Model 3, which sells for over $32,000.
BYD’s passenger cars have not yet entered the US market due to high tariffs, but electric buses are already in use in California.
The king was born in 1966 to a simple rural family in Amhui province, eastern China. However, according to a paper in China’s state publication, the disaster occurred when both parents died young, and he became an orphan while in middle school. The king relied on him and his brother to provide his education.
Wang spent several years at the state-run Beijing Nonferrous Metals Institute, where he earned his master’s degree. The Institute later founded a battery company in Deep Shenzhen, where he dispatched him.
The king immediately felt the opportunity. According to the paper, he started BYD with a team of about 20 people and a team of 2.5 million yuan ($351,994) ($351,994).
He quickly achieved his first success by leveraging China’s cheap labor to overturn an industry that was monopolized by Japanese companies.
In 2003, Wang followed his instincts and challenged the automotive industry by acquiring a struggling state-run automaker for 269 million yuan ($38 million). The investor was worried and plunged the company’s shares by more than 30%. But the king did not repent.
The car manufacturers he acquired technically offered little, Wang recalled in an interview, so he took them to buy and study many used cars from around the world.
“Toyota is the world’s number one automaker, and its craftsmanship, design and products are worth learning. You can stand on your shoulders and reach new heights,” he said in an interview with Tencent.
He was eventually proven and received a $230 million investment from Warren Buffet in 2008.
BYD didn’t start by building a car. It was the first battery manufacturer, and Wang said it solidified the company’s foundation and set it up for success.
“The bottleneck for electric vehicles is the batteries,” he said in an interview with Tencent. “When you master battery technology and accurately predict future directions, you essentially set strategic courses across the EV industry.”
Like Apple founder Steve Jobs, Tesla CEO Elon Musk, and Wang, who studied The Metallurgical Chemistry, he is obsessed with engineering details and remains today. He said in an interview with Tencent that he spends around 60 to 70% of his time on technology, with the rest only on management.
One innovation focused on BYD’s technology is the blade battery, a lithium iron phosphate battery that we pioneered in 2020. The company said its unique shape allows it to maximize the use of available space in the battery pack, while reducing the chances of grabbing fire when damaged.
Beyond batteries, BYD has a higher component percentage within the company and relies on external suppliers compared to other automakers. According to LE, this vertical integration allows production to be reduced more easily and cost significantly.
BYD is also known for its aggressive pricing strategy amid the ongoing price war in China and is not shy about asking suppliers for discounts.
For now, BYD and other Chinese EVs have been effectively locked out of the US market due to tariffs. However, he said as BYD evolves, trade barriers could provide “false security” to certain companies.
“They don’t plan on spending research and development this year to take their feet off the gas, so it’s probably going to be a consistent onslaught until the end of the decade,” he said.
Despite the lack of US presence, BYDs have invaded elsewhere.
According to state media, Wang has pledged to increase his total cargo by nearly 30% this year, and to increase overseas delivery to more than 800,000 vehicles.
However, some challenges have become clear.
“Apart from geopolitics, I think there are more challenges in how they operate in different countries,” says Ray Singh, an independent analyst focusing on China’s automotive industry.
In Brazil, authorities said in December they discovered workers working “slavery-like conditions” at a construction site in BYD. The company later denied those accusations.
In Mexico, according to the Financial Times, Beijing is reportedly delaying approval of local factories due to concerns that BYD’s smart car technology could be moved to the US.
Still, some analysts believe BYD has become an unstoppable force. Xing said it is focused on technology and that BYD is poised to bring about new advancements, whether it is price or innovation.
“They’re just starting,” he said.
