Chinese automaker BYD started 2025 with rapid sales growth amid growing problems at American competitor Tesla, Bloomberg reports.
BYD sold 986,098 passenger cars in the first quarter, up 58% from the same period last year, according to the company's annual report. In March alone, the company delivered 371,419 vehicles, including 166,109 battery electric vehicles (BEVs) and 205,310 plug-in hybrids. The Shenzhen-based company stopped producing internal combustion engine vehicles in 2022 and now produces only electric and hybrid vehicles.
Tesla, by comparison, is expecting much weaker results, with analysts predicting quarterly sales of between 340,000 and about 377,000 vehicles. Tesla, which specializes only in electric vehicles, has faced declining demand, especially in the United States and Europe. This is partly due to the political activism of its CEO Elon Musk, which has negatively affected the brand image.
In China, where Tesla has a large factory on the outskirts of Shanghai, the American company is feeling pressure from local competitors, including BYD. Under the leadership of founder Wang Chuanfu, BYD has recently introduced a number of high-profile innovations, including a system of autonomous driving without additional fees and a super-fast charger that allows you to get a range of 400 km in five minutes.
The market reacted positively to BYD's activity: since the beginning of the year, the company's shares have increased by about 45%, while the value of Tesla shares has fallen by 36%, which also significantly hit Musk's fortune.
BYD has set an ambitious goal of selling 5.5 million cars by 2025, with 800,000 of them to be exported. Despite the tariffs imposed by the EU and the US, the company is not abandoning its plans for global expansion. However, BYD does not yet sell its cars in the US due to high import duties and restrictions on the use of autonomous driving technologies.
Given the dynamics, BYD has every chance to strengthen its leadership in the global electric vehicle market - while Tesla continues to struggle with political pressure, falling demand, and growing competition.