BYD Overtakes Tesla in Global EV Revenue for First Time

BYD Posts Record Quarter, Edges Past Tesla

BYD Co. has overtaken Tesla in quarterly revenue for the first time, reporting $23.4 billion in Q3 2025 compared to Tesla's $23.1 billion. The Shenzhen-based automaker sold 1.13 million vehicles during the quarter, with battery electric vehicles accounting for roughly half and plug-in hybrids making up the rest.

The milestone reflects BYD's aggressive expansion beyond China. The company now sells vehicles in over 70 markets, with particularly strong growth in Southeast Asia, the Middle East, and Latin America. BYD's Atto 3 and Dolphin models have become top sellers in Thailand and Israel.

Pricing Strategy Drives Volume

BYD's vehicles are priced 20% to 40% below comparable Tesla models in most markets. The Seagull, a compact EV starting at $9,700 in China, has become the world's best-selling electric car by unit volume, though it is not yet available in the United States or European Union.

Bill Russo, CEO of Shanghai-based advisory firm Automobility, said BYD's vertical integration gives it a structural cost advantage. "They make their own batteries, their own semiconductors, their own electric motors. That supply chain control is almost impossible to replicate," Russo told reporters.

Profitability Gap Persists

Despite the revenue milestone, BYD's profit margins remain well below Tesla's. BYD reported a net profit margin of approximately 5.2% for the quarter, compared to Tesla's 13.1%. Analysts attribute the gap to Tesla's higher average selling prices and its growing energy storage and services revenue.

Morgan Stanley analyst Tim Hsiao noted that BYD is "winning on volume and geographic diversification, while Tesla still wins on per-unit economics." He maintained an overweight rating on both companies.

Tariff Headwinds Ahead

BYD faces mounting trade barriers in key markets. The European Union has imposed provisional tariffs of 17.4% on BYD imports, while the United States maintains a 100% tariff on Chinese-made EVs. BYD is responding by building factories in Hungary, Turkey, Brazil, and Thailand to localize production and bypass tariffs.

The company plans to begin production at its Hungarian plant in late 2026, which would make it the first Chinese automaker to manufacture vehicles in the EU.