BYD Revenue Eclipses Tesla for First Time as EV Race Heats Up
BYD Co. notched up another win over Tesla Inc. on Wednesday, reporting quarterly revenue that beat Tesla for the first time since the pair have competed in global electric vehicle sales.
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Revenue for China’s best-selling automaker soared 24% to 201.1 billion yuan ($28.2 billion) for the three months that ended in September, falling short of estimates but exceeding Tesla’s $25.2 billion in sales for the same period.
Net income increased 11.5% to a record 11.6 billion yuan, beating estimates, as BYD sold an unprecedented 1.12 million electric and plug-in hybrid vehicles and generated a gross margin of 21.9%. Its profit, however, is still overshadowed by the $2.2 billion Tesla earned.
BYD and Tesla have emerged as leading threats to legacy automakers, particularly as Volkswagen AG, Ford Motor Co., Stellantis NV, and General Motors Co. struggle along the path to profitability with their EV transitions.
As growth in consumer demand for fully electric cars wanes, BYD has been insulated more than Tesla due to its strong lineup of hybrid vehicles.
Hybrid vehicles were a major contributor to the revenue surge at Shenzhen-based BYD, with some models’ upgraded powertrains allowing for more than 2,000 kilometers of range. Another key part of BYD’s edge is its vertically integrated supply chain making more parts in-house gives it a cost and scale advantage to produce cars more cheaply.
