BYD sales in Q1 2025 grew 58% while Tesla continued to fall
Chinese carmaker BYD has recorded an impressive 58 per cent sales growth in the first quarter of 2025 while Tesla is facing tough times due to CEO Elon Musk's political activism and increased competition in China.
Here's What We Know
BYD delivered 371,419 passenger cars in March, bringing the total for the first three months of the year to 986,098 units, according to data released Tuesday. Of those, 416,388 were all-electric vehicles. It's worth noting that BYD stopped producing cars with internal combustion engines in 2022 and now only produces electric cars and hybrids.
Bloomberg notes that this performance of BYD is in stark contrast to that of US rival Tesla, which produces exclusively electric cars. Analysts estimate that Tesla's first-quarter sales may only be about 340,000 units, or a maximum of about 377,000 vehicles.
The political activism of Tesla's CEO is having a negative impact on the brand, leading to a sharp drop in sales in Europe and the US. In China, where Tesla has a large factory on the outskirts of Shanghai, the company's results are affected by strong competition from local manufacturers such as BYD.
In the previous month, BYD announced a number of innovations that caused a stir. Including smart driving technology for most models at no extra cost and an ultra-fast charging system that can add 400 kilometres of range in just five minutes.
BYD shares are up about 45 per cent since the start of the year, while Tesla shares have fallen 36 per cent, which has also reduced Musk's personal fortune by billions of dollars.
BYD has set a goal of selling about 5.5 million cars this year, of which 800,000 are planned for export. This shows the Chinese carmaker's ambition to continue its global expansion despite duties from the European Union and the United States.
BYD now doesn't sell passenger cars in the U.S. because of high duties on Chinese-made cars and a ban on Chinese smart driving technology for electric vehicles.
Source: Bloomberg
