Chinese BYD has surpassed Tesla in revenue for the first time, according to Bloomberg. The automaker reported revenue of 201.1 billion yuan ($28.2 billion) for the third quarter, which is a 24% increase compared to the same period in 2023. In contrast, Tesla's sales reached $25.2 billion.
BYD's net profit for the quarter rose by 11.5%, totaling 11.6 billion yuan ($1.6 billion) — a record figure for the company. The main contributor to the revenue growth was the sales of electric and hybrid vehicles, with 1.12 million units sold during the quarter.
Despite the significant growth in BYD's figures, Tesla's net profit remains higher at $2.2 billion.
The gross profit margin for the Chinese automaker stood at 21.9%. BYD's shares, listed on the Hong Kong Stock Exchange, fell by 0.7% by the close of trading on Wednesday, although the overall increase since the beginning of the year was 37.6%. Meanwhile, Tesla's shares rose by only 4.4% over the same period.
In the fourth quarter, an improvement in BYD's financial indicators is anticipated, as the end of the year traditionally marks a peak demand season.
BYD's success in the domestic market is also supported by increased demand, bolstered by government subsidy programs that encourage consumers to switch to electric and hybrid vehicles.
Government agencies in China have been instructed to increase their purchases of electric cars, which could further strengthen the company's position.
Nevertheless, in May, U.S. authorities imposed 100% tariffs on Chinese electric vehicles "to protect American workers and businesses." Similar restrictions were established in the EU. In October, the European Union approved import tariffs of up to 45% on electric vehicles from China.
Earlier, Spot reported that Chinese electric vehicle manufacturers outpaced Tesla in research expenditures.