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China's BYD Was The Top EV Maker In 2024, Beating Tesla

BYD produced 4,500 more electric vehicles than Tesla did in 2024. Can Tesla catch back up?

BYD Seagull and Chinese EVs global sales top shot

Tim Levin

By: Tim Levin

Jan 2, 2025 at 1:30pm ET

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Tesla, the longtime top EV maker in the world, is now No.2.
Chinese automaker BYD produced roughly 4,500 more EVs than Tesla did in 2024.
Tesla still had the slight edge in annual EV sales, delivering 1.79 million units to BYD's 1.76 million.

Tesla has lost the title of the world’s top electric-vehicle producer to Chinese juggernaut BYD. It’s the latest reminder—and an especially stark one—that China is running away with the global EV sector and isn’t looking back.

In 2024, Tesla made 1,773,443 electric vehicles, America's EV leader said on Thursday. (Since Tesla only makes EVs, that’s also its total production number for the year.) BYD, meanwhile, churned out 1,777,965 EVs, about 4,500 more than Tesla did, the firm said this week.

Rewind back to 2023, and Tesla had a sizable lead. That year, BYD made roughly 1.6 million EVs, a figure dwarfed by Tesla’s 1.85 million.

Tesla vs. BYD In 2024

But the two global EV leaders had vastly different 2024s. Tesla suffered from sluggish demand, which was weighed down by a stale vehicle lineup and stiffer competition than ever. In the first two quarters of 2024, the American automaker’s deliveries dropped on a year-over-year basis, before rebounding in the back half of the year.

Tesla annual sales declined for the first time in its history and the company failed to meet its stated goal of “slight growth” in 2024.

BYD Atto 3

The BYD Atto 3.

Tesla was always destined to lose share as the EV market expanded. And EV sales growth slowed in 2024 as mainstream car buyers balked at high EV prices, elevated interest rates and so-so charging infrastructure.

But the heart of Tesla's current problems, analysts say, is its aging and pricey lineup. The company relies almost exclusively on two high-volume models: the Model Y crossover and Model 3 sedan. The Cybertruck, launched in late 2023, was its first brand-new model since 2020. But that pickup is proving too expensive and offbeat to meaningfully drive sales. Tesla CEO Elon Musk’s polarizing political activity probably isn’t helping the company’s fortunes in the U.S., either.

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BYD, by comparison, grew EV production and sales by around 12% in 2024 as it continued its expansion into new markets. This is a good time to mention that full EVs are only part of BYD’s business; it also makes plug-in hybrids. BYD’s overall vehicle sales skyrocketed by 41% to around 4.27 million units last year. BYD started out as a battery maker in the 1990s, started making cars in the early 2000s and has been aggressively expanding its EV business in recent years.

Look at 2024’s numbers another way, however, and Tesla winds up on top. Tesla reported vehicle deliveries of 1.79 million units. BYD’s EV sales came in at 1.76 million units. So, when you look at vehicles sold rather than vehicles produced, Tesla appears to have the slight edge still. Evidently, Tesla sold thousands of vehicles in 2024 that it had produced in 2023.

But there's no doubt BYD has momentum on its side, so this may be the last calendar year when things look neck-and-neck. The company reported selling 595,413 EVs in the final quarter of 2024. Tesla says it delivered 495,570 cars during the same period. That's a new company record, but still fell 100,000 units or nearly 20% short of its primary global rival.

The Rise Of Chinese EVs

BYD and other Chinese EV makers benefit from major government subsidies, including a cash-for-clunkers program launched last April. That and other policies likely helped BYD out here.

More broadly, relentless government support for EV and battery production has helped turn China’s auto industry into a force to be reckoned with on the global stage. And incumbents are feeling the heat like never before.

BYD Seagull (2023)

The BYD Seagull hatchback costs just $10,000 in its home market.

China is now the world's top vehicle exporter, unseating Japan. Its homegrown automakers are squeezing the likes of BMW and General Motors out of its domestic market. They’re also swallowing up market share outside of China, in places like South America and Europe. On top of all that, Chinese cars are known for their high quality, great technology, value and quickness to market. Vehicles like the Xiaomi SU7 (yes, that's the smartphone company) and wildly inexpensive BYD Seagull have impressed Western auto executives, analysts and journalists.

What's Next For Tesla vs. BYD In 2025?

The big question is: Will BYD pull away for good in 2025, or can Tesla reignite its growth?

2024 Tesla Model 3 (Highland)

The Tesla Model 3 sedan was refreshed for the 2024 model year.

Photo by: Tesla

BYD has headwinds of its own to contend with. President Joe Biden enacted 100% tariffs on Chinese-made EVs, and followed that up with a ban on certain vehicle software that originates in China. Those policies would seem to effectively shut BYD and its peers out of the huge U.S. car market for the time being, and maybe forever. We'll have to see if President-elect Donald Trump follows through on his invitation for Chinese companies to build their EVs in the U.S.

Tesla says it will start launching new models, including more affordable ones, in the first half of 2025. We don’t know exactly what those are yet, but there are rumors. Tesla may also introduce an updated version of its extremely popular Model Y. Those new vehicles could be just the kick in the pants Tesla needs to fight with BYD another day.

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Contact the author: Tim.Levin@InsideEVs.com

Correction 1/6 9:00 AM ET: This article has been updated to correct a mention of BYD's annual EV sales figure from 2024. The firm sold 1.76 million vehicles, not 1.65 million. We regret the error.

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