BYD closes 2024 on Tesla’s heels
China’s EV powerhouse is narrowing the gap with the current global leader.
Tesla’s global EV dominance may soon be coming to an end. Chinese automaker BYD ended 2024 with a bang, recording a massive 4.25 million passenger car sales. Among these, 1.76 million were fully electric vehicles (EVs), a 41% increase from the previous year.
December was especially strong for BYD, with the company selling 509,440 plug-in hybrid and pure-electric vehicles, including 207,734 EVs. This surge was fueled by government subsidies and added buyer incentives, helping BYD set a new monthly sales record.
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Chasing Tesla’s crown
Tesla, which announced its fourth quarter sales earlier this week, remains the global leader in EV sales despite an ultimately disappointing year. The legacy EV maker sold 495,570 vehicles in the fourth quarter, bringing its total annual sales to 1.79 million. 
Free charging, 0% financing, and low-priced leases helped drive sales in the fourth quarter but couldn’t make up for a slow start to the year. Tesla’s total annual sales not only fell short of analysts' estimates, but they also marked the first time in over a decade that the company saw sales shrink, with 1.1% fewer sales in 2024 compared to the year before.
Despite the disappointing year, Tesla still finished out 2024 as the leading EV maker, edging out BYD by just around 30,000 vehicles. While Tesla has consistently outpaced BYD on a quarterly basis this year, the Chinese automaker has made significant progress. BYD’s last-quarter surge narrowed the gap, making it clear that the race for EV dominance is closer than ever.
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Outpacing legacy automakers
BYD’s meteoric rise stands in stark contrast to the struggles of legacy carmakers like Nissan, Volkswagen, and Stellantis, which are grappling with declining sales in China and sluggish transitions to EV production. Meanwhile, BYD’s pivot away from fossil-fuel vehicles in 2022 has positioned it as a leader in the global shift toward electrification.
The company’s strong performance is not only a challenge to Tesla but also a warning shot for traditional automakers. With its total sales nearing those of Ford and Honda, BYD is solidifying its status as a global automotive powerhouse.
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Final thoughts
With annual revenue expected to surpass $100 billion for the first time, BYD is poised to invest further in its EV lineup and global expansion. The company’s aggressive growth strategy could make 2025 an even tighter race with Tesla. As the world’s appetite for EVs continues to grow, the competition between these two titans promises to shape the industry's future.
BYD’s remarkable 2024 performance proves that it’s not just competing with Tesla—it’s gaining ground. If BYD can finally dethrone Tesla in 2025, the Chinese automaker will be cementing itself as one of the biggest manufacturers in the global automotive market.
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