Chinese electric vehicle giant BYD has doubled its quarterly profit to a staggering $1.3 billion, further extending its lead over Elon Musk’s Tesla in the surging global EV market.
The Shenzhen-based automaker reported a 36% year-on-year rise in revenue for the first quarter, reaching 170.36 billion yuan (approximately $23.51 billion). This milestone follows BYD’s recent leap past Tesla in annual revenue, crossing the $100 billion threshold.
In stark contrast, Tesla’s Q1 profit plunged by 71% to $409 million, while revenue dropped 9% to $19.34 billion. The American EV pioneer continues to battle intensified competition in China, mounting brand challenges, and criticism over Musk’s involvement with U.S. government affairs.
BYD’s vehicle sales surged 60% in the first quarter, nearing 1 million units — including both electric and plug-in hybrid models. Tesla’s vehicle deliveries, a close reflection of its sales performance, fell 13% to 336,681 units during the same period.
Bolstering its global ambitions, BYD has set a target to export 800,000 vehicles this year, aiming for a total of 5.5 million units sold worldwide. The brand has seen rapid traction in growth markets like Europe, Mexico, and South America, positioning it as a rising threat to U.S. automakers, including Detroit’s Big Three — Ford, GM, and Stellantis.
Despite not selling in the U.S. due to high tariffs on Chinese EVs, BYD benefits from in-house manufacturing of up to 80% of its components. This vertical integration has shielded it from the brunt of the ongoing U.S.-China trade tensions.
Innovations like five-minute EV charging and the debut of its autonomous “God’s Eye” system have further fueled BYD’s appeal. Tesla, however, continues to hold a strong edge in software sophistication.
Meanwhile, Elon Musk, under growing scrutiny, has announced plans to scale back his government duties, stating he will return his focus primarily to Tesla. His expected exit from federal service by May 30 aligns with regulatory limits on special government employees.
As BYD accelerates ahead and Tesla regroups, the electric vehicle race is entering a new, fiercely competitive chapter.
