BYD, China’s leading electric vehicle (EV) maker, is becoming a serious rival to Tesla, surpassing the American company in annual revenue for the first time in 2024. With $107 billion in revenue, BYD outperformed Tesla by approximately $10 billion. The company also introduced an innovative fast-charging system that gives its new EV models 250 miles of range in just five minutes.

This comes as Tesla struggles with declining sales and market share, particularly in China and Europe. Tesla’s global sales dropped for the first time last year, and its core products, such as the Model Y, have seen little innovation. Meanwhile, BYD is gaining ground by offering affordable, tech-enabled EVs, with its entry-level EV priced below $10,000 in China.

BYD’s latest model, the Qin L EV, offers specs comparable to Tesla’s Model 3 but at half the price. Tesla is working on a smaller, more affordable Model Y, but production won’t begin until 2026. Despite being the leading EV maker in the US, Tesla faces growing competition from BYD and other Chinese companies, and the lack of trade barriers could make BYD an even greater threat.