If you have paid any attention to the electric vehicle wars you will know that a Chinese behemoth named BYD is expanding today at the rate that Tesla was expanding five years ago. The really big difference is that BYD was already large in the automotive space so now they’re huge.

The most interesting thing to know about BYD other than its Chinese roots is that it used to produce primarily internal combustion vehicles but by 2022 was selling only electrified vehicles, the majority of which were full battery electric EV’s.

Let’s dive into a detailed comparison between BYD and Tesla, focusing on their histories, manufacturing, technologies, market presence, and more.

Elon Musks Evolution on BYD:

Elon Musk has done a complete 180 on his position relating to BYD and their credibility in the automotive market. Take a look at these three quotes:

byd vs tesla
  1. 2011: During a Bloomberg interview, when asked about BYD, Musk laughed and said, “Have you seen their car? … I don’t think they have a great product“. CREDIT
  2. 2023: In response to a video clip from 2011, Musk acknowledged BYD’s progress, stating, “Their cars are highly competitive these days“. CREDIT
  3. 2024: Musk commented on BYD’s market performance, saying, “Frankly, if there are not trade barriers established, they will pretty much demolish most other car companies in the worldCREDIT

BYD vs Tesla Sales Through Time

As you can see in the table we have constructed below BYD was selling a lot of vehicles before Tesla and today BYD outsells Tesla not only in total sales volume, but in EV’s.


byd vs tesla sales volume 2010-2024

Note that in 2022 BYD, Stop selling stopped selling passenger vehicles that were not electrified at least to the point of being hybrids. This means BYD outsells Tesla in both EV’s and electrified ICE vehicles. BYD is killing it right now.

Here are some stats and details on both companies you will likley find interesting:

Company Briefs

BYD (Build Your Dreams):

  • Founded: 1995 in Shenzhen, China
  • Initial Focus: Started as a manufacturer of rechargeable batteries for mobile phones and laptops
  • Expansion: Grew into an automaker and expanded globally, focusing on automobiles, batteries, and energy storage
  • Mission: Create sustainable technologies like electric transportation and renewable energy solutions
  • Workforce: Employs over 200,000 people across six continents

Tesla:

  • Founded: 2003 in San Carlos, California by Elon Musk and other co-founders
  • Initial Focus: Accelerate the world’s transition to sustainable energy and transportation through affordable EVs and energy products
  • Expansion: Became the world’s most valuable automaker, catalyzing the shift towards EVs with luxury models and emphasis on technology and performance
  • Mission: Focus on sustainable energy and transportation
  • Workforce: Employs tens of thousands globally

Manufacturing and Sales

BYD:

  • Manufacturing Capacity: Operates several vehicle production facilities with tens of gigawatt hours of battery production capacity
  • Sales: Top-selling EV brand globally, thanks to strong domestic sales in China
  • Vertical Integration: Carries out almost all manufacturing itself

Tesla:

  • Manufacturing Capacity: Faced well-publicized manufacturing challenges but expects to produce over 1.5 million EVs in 2023 with new factories in Austin, Berlin, and Shanghai
  • Sales: Leads in many Western countries like the United States and Western Europe
  • Vertical Integration: Relies more on external suppliers and partners

Technologies and Innovations

Batteries:

  • BYD: Manufactures its own lithium iron phosphate (LFP) blade batteries, known for safety and longevity
  • Tesla: Uses Panasonic/CATL lithium-ion cells, focusing on high energy density and performance

Autonomous Driving:

  • BYD: Developing its own autonomous driving technologies but not as advanced as Tesla’s
  • Tesla: Known for its Autopilot and Full Self-Driving (FSD) capabilities, leading the industry in autonomous driving technology

Energy Solutions:

  • BYD: Offers energy storage solutions and solar panels, integrating with its EV offerings
  • Tesla: Provides energy generation and storage systems, including Powerwall, Powerpack, and Solar Roof

Market Presence



BYD:

  • Global Reach: Dominates the Chinese EV market and is expanding globally
  • Product Lineup: Offers a wide array of electric cars, from compact city cars to luxurious sedans

Tesla:

  • Global Reach: Strong presence in Western countries, with significant market share in the US and Europe
  • Product Lineup: Focuses on luxury and premium electric vehicles, including Model S, Model 3, Model X, and Model Y

Financial Performance

BYD:

  • Revenue (2023): $68.1 billion
  • Assets (2023): $79.6 billion

Tesla:

  • Revenue (2023): $86 billion
  • Assets (2023): $86.8 billion

Pricing and Affordability

BYD:

  • Entry-Level Models: Generally cheaper, with models like Dolphin and Atto 3 starting at significantly lower prices

Tesla:

  • Entry-Level Models: Start at higher prices, reflecting the brand’s focus on luxury and performance

Sustainability and Environmental Impact

BYD:

  • Sustainability Efforts: Focuses on creating sustainable technologies and renewable energy solutions
  • Environmental Impact: Known for its eco-friendly manufacturing processes and products

Tesla:

  • Sustainability Efforts: Aims to accelerate the world’s transition to sustainable energy
  • Environmental Impact: Pioneered the EV market with a strong emphasis on reducing carbon emissions

Conclusion

An estimated 90% of Tesla’s stock value is tied up in its perceived lead in autonomous vehicles but BYD has its own widely successful autonomous tech.

Both BYD and Tesla are leading players in the electric vehicle market, each with its unique strengths and strategies. However, there is no question that BYD is stronger than Tesla and likely has better tech than Tesla.

Their competition has innovation and growth in the EV industry, benefiting consumers and the environment alike.


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