If we had to choose the brand that dominates the electric vehicle market, it’s clear there would be a clear winner: Tesla. It seems there’s no debate in our minds, Tesla has fought with blood, sweat, and tears to earn that label after many years of innovation, and everything seemed to be going according to plan (Musk’s plan), but now, a new player has entered the game. And the same entrepreneur who revolutionized the electric car is now facing strong competition, a competitor coming from East Asia, with a name and a history. Of course, we’re talking about BYD, the iconic Asian car brand that is stealing Tesla’s thunder by betting on technology at nearly unbeatable prices.
Over the lion’s dead body…
With all the controversies surrounding Tesla, the company has lost momentum in its sales, and many users have voiced their dissatisfaction. Ever since Musk joined the central government and has claimed responsibility for firing workers and making certain social sector cuts, Tesla hasn’t been able to recover and has lost steam in recent months. So, users are looking for new options, and among those options, BYD has emerged as the ideal candidate. It was clear they wouldn’t let this incredible opportunity slip by to position themselves in the market as a major competitor to what had been the biggest brand until now.
Should Tesla be worried?
At first glance, it doesn’t seem like Tesla will suffer too much from BYD’s presence on American soil, thanks to the high tariffs placed on electric vehicles made in China, which are usually sold at much lower prices than Tesla’s. In fact, by 2024, those vehicles already faced 100% tariffs (note: only electric vehicles produced in China), as a way to encourage buyers to choose domestic manufacturers.
Tesla vs BYD by the numbers
According to recent data, BYD sold 4.27 million vehicles in 2024, generating $107 billion in revenue. In comparison, Tesla only reached 1.79 million units sold, with $97.7 billion in revenue. Despite selling fewer vehicles, Tesla still brings in similar amounts of money, which suggests that its vehicles remain significantly more expensive—perhaps that’s why some people prefer to opt for foreign-made vehicles.
Two completely different technologies
As you can see, both companies have points in common, namely, the electric future, but also many that set them worlds apart. For example, in terms of battery tech, Tesla uses cylindrical cells that maximize energy density, while BYD uses its own prism-shaped Blade battery, which is cheaper to produce and more efficient in terms of heat management.
Why would someone choose BYD?
One reason is that they’re much cheaper. But in reality, they offer even more noticeable advantages. For example, these vehicles are capable of dissipating heat much more efficiently without needing external cooling systems, which helps reduce production costs.
Tesla, on the other hand, doesn’t have this, its vehicles generate twice as much heat per volume and require external mechanisms to prevent overheating, which means there’s less energy dedicated to powering the vehicle.
Protecting domestic industry
It’s clear that Chinese progress is unstoppable, but protecting domestic industry is a top priority for all governments in this country. Mainly because the United States is (and obviously wants to remain) a global superpower. If it allows the market to be dominated by other powers, that would directly impact its economy and workforce. So the main goal is, of course, to protect local manufacturers and drastically reduce dependency on Chinese products (even though that hasn’t stopped brands like BYD from continuing to grow with heavy investment in R&D). Although it does sound a bit ironic that Tesla operates one of its major factories, (the Shanghai Gigafactory) in China. So, they have to be friends… but not too much.
Will Tesla lead the market again?
New brands are forcing established companies to rack their brains and invest in innovation. And now, with the rise of Chinese manufacturers, they may need to rethink what kind of market model they want to follow as long as they continue with their two big pillars: design and sustainability.
BYD can be (and already is) a serious threat to Tesla, but will it manage to dethrone it?