Last year marked a major milestone for Chinese automaker BYD, as it overtook Tesla for the first time to claim the top spot as the world’s largest electric vehicle producer. A big win for BYD’s founder Wang Chuanfu—and a tough blow for Elon Musk.
How BYD Dethroned Tesla in the EV Market
Since 2020, China has made an astonishing leap—going from being a net car importer to becoming the world’s top vehicle exporter. With the recent addition of the BYD Seal (an electric vehicle priced under $30,000) to the UBS EV Teardown series, we’re taking a closer look at this latest-generation model from China’s leading automaker. The goal? To get a better grasp on BYD’s technology, supply chains, and cost strategies.
Why is this important right now? Because BYD and other major Chinese manufacturers are on track to take over the global auto industry with affordable, high-tech EVs built for everyday drivers. Their rise is pushing the shift to electric vehicles forward—at a time when traditional automakers are still easing into the transition. On top of that, China’s tougher economic climate might push the most financially stable Chinese carmakers to double down on expanding overseas.
Short for “Build Your Dreams,” BYD now boasts a valuation of over $100 billion, edging past Tesla, which was sitting at around $97.7 billion.
The company got its start back in 1995 in Shenzhen, originally named Yadi Electronics. Wang Chuanfu launched it with the goal of producing phone batteries, using nearly $1 million loaned by a relative to get things rolling.
From Battery Maker to Global EV Leader
Affordable cars, an expanding customer base, and a new ultra-fast charging system — Chinese EV giant BYD is stepping up its game and giving Tesla a real run for its money, just as the U.S. company sees its global sales dip.
In 2024, BYD pulled in $170 billion in revenue, outperforming what most analysts had expected and leaving Tesla’s $155.5 billion in the rearview mirror.
At one point, BYD was a key supplier for major global brands like Nokia and Motorola, according to ABC News, Australia’s public broadcaster. In 2003, the company acquired Xian Qinchuan Automobile, a small electric vehicle maker based in China. While most automakers were looking for batteries to fit their cars, BYD flipped the script—it was building cars to fit its batteries.
In 2009, Warren Buffett made a $250 million bet on the company. That same year, Wang Chuanfu told the Financial Times that BYD aimed to become the top carmaker in the world by 2025. Before shifting its full focus to electric cars, BYD was producing and selling hybrid buses to local governments.
Eventually, the Chinese government officially made electric vehicles a national priority—especially as part of the “Made in China 2025” initiative, which had been outlined nearly a decade earlier.
The Chinese market still brings in about 85% of BYD’s total revenue. According to a 2023 report by UBS, cars made by BYD cost roughly 15% less to produce than Tesla vehicles built in the U.S. or Europe. For now, BYD’s real competition is mostly within China.
What really sets BYD apart is its vertical integration. The company doesn’t just build cars—it also produces its own batteries and secures direct access to key raw materials. In fact, BYD has bought stakes in important lithium mines across Latin America, giving it even more control over its supply chain.
Competition in China has become so intense that some models now sell for as little as €5,000. Even so, sales aren’t climbing like they used to. On the international front, things aren’t looking much brighter—trade tensions with the U.S. have tightened restrictions. Beginning in 2027, cars made with Chinese components will no longer be allowed for sale in the United States.
New Markets, New Hurdles for BYD
For companies like BYD, growth now lies outside the Western world, with focus shifting to regions like Asia (particularly Indonesia) and Latin America (such as Brazil). The catch? In these markets, electric vehicles haven’t gained the same traction as they have in North America or Europe.
In February, BYD made waves by revealing a breakthrough that could cement its lead over Tesla: upcoming models will be able to recharge in just five minutes and offer a driving range of over 450 kilometers. That’s a noticeable step ahead of what even top-tier models from Mercedes or Tesla can currently manage.
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