In a significant development in the global electric vehicle (EV) market, Chinese EV giant BYD Co Ltd (BYDDY, BYDDF) has outpaced its American rival Tesla Inc (TSLA) in quarterly revenue for the first time since 2022. BYD reported a net profit of 11.6 billion yuan ($1.63 billion) for the third quarter, representing an 11.5% increase from the same period last year.
The company’s operating revenue surged by 24% to 201.12 billion yuan ($28.25 billion) during the quarter. This surpasses Tesla’s total revenue of $25.18 billion for the same period, marking a major milestone for BYD.
The shift in revenue dominance stems from BYD’s strategic focus on electric vehicles. The company completely stopped producing combustion engine vehicles in March 2022 and has since concentrated its efforts on building its EV portfolio. BYD offers a range of vehicles, including both battery electric vehicles (BEVs) and plug-in hybrids, while Tesla exclusively sells battery-powered EVs.
Despite outperforming Tesla in revenue, BYD’s net profit still lags behind. Tesla reported a net income of $2.167 billion in the third quarter, surpassing BYD’s profit. This difference reflects the varying cost structures and operational efficiencies of the two companies.
BYD’s third-quarter performance highlights its growing influence in the global EV market. However, the company’s lower net profit compared to Tesla underscores the competitive nature of the industry and the ongoing challenges faced by both companies. While BYD has achieved a significant milestone in surpassing Tesla in revenue, both companies continue to grapple with evolving consumer preferences, market dynamics, and technological advancements.
The global EV landscape is dynamic, with both BYD and Tesla vying for leadership. This latest development indicates that the competition is intensifying, with both companies striving to establish their position as the dominant force in the future of mobility.
