BYD Surpasses Tesla in Quarterly Revenue for the First Time

Chinese electric vehicle giant BYD has surpassed Tesla in quarterly revenues for the first time, posting over 200 billion yuan ($28.2 billion) between July and September—a 24% increase from last year. However, Tesla still sold more EVs than BYD in the third quarter.

The growth in China's EV sales has been fueled by government subsidies encouraging the switch from petrol-powered cars to EVs or hybrids. BYD set a monthly sales record in the last month of the quarter, showing continued momentum for China's top carmaker. Meanwhile, there is increasing international backlash against Chinese government support for domestic carmakers like BYD.

Recently, the European Union imposed tariffs of up to 45.3% on Chinese-made EVs, adding to existing 100% tariffs from the U.S. and Canada, in response to alleged unfair state subsidies. Official data showed 1.57 million applications for a $2,800 national subsidy per older vehicle traded in for a greener one. China is relying on high-tech products to boost its economy, with the EU being its largest overseas market for electric cars. The rapid growth of China's domestic car industry, with brands like BYD entering international markets, has raised concerns in the EU about competition with cheaper Chinese prices.