As the automobile industry is shifting toward electric vehicles, the two prominent EV giants BYD and Tesla are contesting head-to-head. BYD, a Chinese-based company and Tesla, a US-based company, are also influenced by geo-political tensions. BIS Research found that BYD overtook Tesla with record-breaking revenue in 2024, making it the leading EV company in the world. This rise of BYD indicates a Thucydides trap situation between the EV giants. 

BIS Research Findings

According to BIS Research, the electric vehicle market was estimated to witness growth at a CAGR of 28.3% with BYD holding a major share of 777.1 billion yuan, which is equal to $107.2 billion in 2024. This high revenue snatched Tesla’s title to be the no.1 EV manufacturing company. BIS Research reported that this high revenue is directly proportional to the high demand for EVs across Asia, Europe, and Latin America. 

How did BYD compete with Tesla? 

BYD sold about 3 million vehicles in 2024. The company acquired this major sale by focusing on battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). 

Along with this, the company expanded its market to Thailand, Brazil, and Germany, giving more competitive prices than Tesla. 

The company also adopted an environmentally friendly strategy by transitioning fully to electric and plug-in hybrid models in 2022. Although BYD is making its mark in EVs,  it would be a hasty conclusion that the rise of BYD will be the fall of Tesla. Both are giving a tight competition to each other along with their homeland countries.