Key Takeaways
- Byd's revenue has surpassed Teslas, but this may not remain the case over the next several years
- Tesla's recent announcements and development of new technology will open new revenue streams for the company
- Byd will face multiple challenges in its global sales with new US and EU regulations being applied to Chinese EV exports
Introduction
The electric vehicle industry has become incredibly saturated with rivals to Tesla. Most notably the Chinese car company Byd. In this article, we will dive deeper into Byd vs Tesla and uncover which EV company has a promising future.
Byd Vs Tesla
| Byd | Tesla | |
| Revenue (Annual 2024) | $95.71 Billion | $71.98 Billion |
| Market Cap | $103.86 Billion | $1.24 Trillion |
| P/E Ratio | 20.91 | 107.75 |
| 52 Week Range | $21.80 - $42.00 | $138 - $488 |
| Headquarters | Shenzhen, China | Texas, USA |
Difference Between Byd and Tesla
Although we can see numerous differences between the two companies, most notably the company's financials, Byd and Tesla share multiple differences in terms of their brand, reputation, and products.
While Byd has seen an increase in revenue through 2024, Tesla's stock price has been steadily growing traction, most notably due to the company's future product releases and the incoming Trump presidency in January 2025.
Most notably, Tesla's brand must be one of its most valuable assets, with estimates that the brand's value alone stands at $71.91 billion, whereas Byd's brand value is roughly $10.05 billion. Although Tesla was the first industry leader, Elon Musk's personal brand has contributed significantly to Tesla's.
However, Byd has been increasing its market share, mostly within China and Asian countries, due to its affordability vs Tesla. In 2024 Byd overtook Tesla as the world's largest producer of electric vehicles, as Tesla's output was 1,774,000 vs Byd's 1,777,900.
This is further reflected in each company's car prices. While Byd's flagship SUV, Atto 3, is selling for around $40,000 USD, vs Tesla's sedan Model 3, which goes for $48,000, customers seem more drawn to the former option.
What Does the Future Look Like for Byd and Tesla?
While the world is slowly phasing out gasoline cars and transitioning toward EVs, the markets for Byd and Tesla are still strong, with indications of consistent revenue growth throughout the 21st century.
Although these two companies may share similar products, but each of their futures varies quite significantly due to their innovative culture and regulatory concerns.
Innovation
We are all aware of Tesla's ability to remain competitive through its innovation and technology. With the announcement of Tesla's cybertaxi service and humanoid robotics, Tesla's future looks very promising.
On the other hand, Byd hasn't announced any diversification into other industries comparable to Tesla. This may restrict Byd's ability to stay in competition with Tesla in the long run. Byd may continue to outpace Tesla in car manufacturing, but it seems that's all Byd can do.
Regulation
With geopolitical issues rising worldwide, car manufacturers such as Byd will face steep regulations when exporting their vehicles. With the EU placing steep tariffs on Chinese EV makers, along with Trump's eye-watering 200% on Chinese EV imports into the US, Byd may struggle to maintain its global sales.
Conclusion
It seems to be quite clear that although Byd's financial health is looking relatively stable compared to Tesla's, in terms of revenue to stock price, Byd has an uphill battle ahead of them. Tesla, on the other hand, has positioned itself well for releasing future products that can consistently drive new revenue streams that can support future stock growth.
Between Byd vs Tesla, investors may want to remain cautious when considering Byd stocks and potentially wait and see if Byd can maintain a foothold in the EU and how Trump's tariffs affect Byd's bottom line.
Frequently Asked Questions
Is Byd beating Tesla?
In 2024, Byd produced more cars than Tesla in the stock market; Tesla outpaced Byd. For future growth, Tesla has positioned itself to grow out new revenue streams by introducing new products and services whereas Byd has restricted itself to just car manufacturing for now.
Why do people prefer Byd vs Tesla?
Ultimately, this comes down to price, Byd's flagship Atto 3 sells for $40,000+, whereas Tesla's sedan Model 3 sells for roughly $47,000+.
Why is Byd so successful?
Byd's global success can be attributed to three key points. One, the Chinese government subsidized a substantial amount of Byd's costs, two, Tesla's openness with their patents removed a lot of R&D legwork, and finally, the labour and production costs in China are much lower than those in the US.
What does BYD stand for?
BYD stands for Build Your Dreams. It is a reference to being capable of achieving your goals, in anything you do.
