In a landmark shift for the global automotive industry, Chinese automaker BYD officially surpassed Tesla in 2023 to become the world’s largest producer of electric vehicles (EVs) — a moment that signals both the rise of China’s EV industry and a changing of the guard in global car manufacturing.
From Battery Maker to Auto Industry Giant
Founded in 1995 in Shenzhen by Wang Chuanfu, BYD started as a battery manufacturer, supplying major global brands like Nokia and Motorola. Armed with a modest $1 million family loan, Wang built BYD into a major tech supplier before making a bold pivot in 2003 — acquiring a small EV company and entering the automobile market.
What set BYD apart was its unique strategy: designing cars around its own batteries, creating more efficient, cost-effective models compared to competitors.
Buffett’s Bet and China’s EV Boom
In 2009, Warren Buffett’s Berkshire Hathaway invested $250 million in BYD, betting on the company’s future success. The following years saw BYD ride the wave of China’s EV-friendly policies, especially the government’s “Made in China 2025” push, positioning the automaker as a leader in the new era of electric transportation.
Overtaking Tesla by the Numbers
By 2024, BYD reported a staggering $170 billion in annual revenue, outpacing Tesla’s $155.5 billion. Its market valuation rose to over $100 billion, overtaking Tesla’s $97.7 billion.
One of BYD’s greatest strengths lies in its vertical integration. Unlike traditional carmakers, BYD controls nearly every step of its production process — from manufacturing batteries to securing lithium supplies — resulting in lower costs. UBS analysis estimates BYD cars cost around 15% less to produce than Teslas built in the U.S. or Europe.
Dominating China, Expanding Globally
Currently, around 85% of BYD’s sales come from its home market, China, where fierce competition and aggressive pricing shape the EV landscape. Some models are priced as low as €5,000, giving BYD an edge in both affordability and adoption.
Looking forward, BYD is focusing on Asia, Latin America, and emerging markets for its next phase of expansion, as regulatory hurdles — especially in the U.S. — complicate its North American plans.
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Breakthrough Battery Innovation
In early 2025, BYD revealed a game-changing battery system capable of charging in just five minutes while offering a 450 km driving range. This breakthrough positions BYD ahead of many established competitors, including Tesla and Mercedes, in both performance and convenience.
With this innovation and its aggressive global strategy, BYD is poised to maintain its lead in the EV race for years to come.
