Tesla and BYD are the world's largest electric-vehicle makers.
In 2022, China EV and battery giant BYD's vehicle sales raced ahead of Tesla's and are now well more than twice as high, three times as much in Q4 2024. For all-battery electric vehicles (BEVs), BYD has seized the crown in the past two quarters.
Tesla earnings plunged in Q1, missing already-lowered estimates, but Elon Musk remained bullish on robotaxis in Austin this June.
BYD followed up with booming growth. Net income passed Tesla's for the first time, taking the lead in yet another key metric. April EV sales were strong, with fully electric battery vehicles once again.
Tesla stock is down sharply in 2025, but has rebounded on robotaxi hopes. It's hitting resistance, but that could offer a buying opportunity. BYD stock, up sharply in 2025 amid booming growth, is setting up near record highs.
Tesla Vs. BYD Sales
Tesla delivered 336,681 EVs in Q1, down 13% vs. a year earlier and the lowest since Q2 2022. They fell 32.1% vs. Q4's record 495,570 EVs. Q1 deliveries once again missed analyst estimates, which had been cut substantially during the quarter.
Tesla China sales appeared to edge higher vs. a year earlier, but those tend to be lower margin. U.S. and European sales have tumbled on Musk's brand woes.
The Cybertruck, Tesla's first new passenger EV in the past five years, appears to be a bust. Deliveries appeared to slow yet again in Q1, even with the Cybertruck becoming eligible for the $7,500 tax credit. Overall sales of the Model S, X and Cybertruck were just 12,881.
Tesla also deployed 10.4 gigawatt-hours of energy storage products in Q1, down slightly vs. Q4's record 11 GWh but up 156% vs. a year earlier.
Meanwhile, BYD sold 1,000,804 EVs in the seasonally slow Q1, down 34.3% vs. Q4's record 1,524,270 vehicles. But they jumped 59.8% vs. a year earlier. Exports and overseas sales, which tend to be higher margin, rose sharply.
Plug-in hybrids continue to lead, but passenger BEV sales were 416,388, easily beating Tesla for a second straight quarter.
BYD reported April sales of 380,089, up 0.7% vs. March and 21.3% vs. a year earlier. The EV giant is shifting from older models to newer EVs, which have driver-assist systems standard. Overseas sales hit a record for a fifth straight month, at 79,086.
Notably, BYD's BEV sales outpaced PHEV sales for the first time since January 2024. BEV sales grew 45.8% vs. a year earlier to 195,740.
Tesla does not release monthly sales, but European sales continued to plunge in April while China deliveries were OK.
New Tesla Model Y, Cybertruck
Tesla began deliveries of the new Model Y in China on Feb. 26, with the U.S. and Europe following in early March.
The new MY has a clearly different front and back, with a light bar similar to that of the Cybertruck, as well as many other EVs.
A Model 3 revamp in late 2023, like the Model S and Model Y updates, didn't provide much of a sales boost. Those refreshes had some real internal improvements but barely perceptible exterior changes.
Tesla is already offering cheap financing for the new Model Y. Wait times are low.
As for the Cybertruck, Tesla has introduced a new, lower-priced variant at $69,990. It has slightly lower range but slower acceleration and a variety of features removed or downgraded. But Cybertruck discounts continue to increase.
Tesla's 'Affordable' EV
The EV giant in 2024 ditched long-touted plans for a "next-generation" EV and "revolutionary" manufacturing. Tesla now plans "affordable vehicles," using existing production lines.
In the Q1 earnings release, Tesla stuck to its plan for the first "affordable" EV to begin production by mid-year, though that might imply mass output months later. On the earnings call, management said the cheaper EV line will "resemble" the Model Y or 3. Several reports had stated that the first cheap EV would be a stripped-down Model Y
It's unclear how a low-end EV might fare outside the U.S., without IRA credits. There are many small EVs in Europe and especially China, where a quality ride can go for well under $25,000 or even $15,000. The BYD-led push to make driver-assist features standard on cheap EVs is another issue for an "affordable" Tesla EV.
Tesla's EV pipeline is rather thin, raising concerns about demand in 2026 and beyond.
As for the Tesla Semi, the EV giant has delivered a few dozen to PepsiCo. A few more customers, including Walmart, had taken possession of at least one Tesla Semi. But it's still unclear what the specs and price for the EV big rig are, though there are recent indications that the price tag has gone up substantially. Tesla recently said it expected mass production in 2026, but Semi timelines have often slipped by a factor of years.
BYD Expansion
BYD sells BEVs and PHEVs from around $10,000 to $150,000, including its premium Denza, FangChengBao and Yangwang brands, with a steady stream of new or upgraded models.
Its hybrid system offers a touted 2,100 kilometers (1,305 miles) in combined battery-and-gas range.
Improved driver-assist systems and faster charging also are expanding to more of BYD's lineup.
Overseas sales are surging, a trend that will likely continue. Export logistics have improved, in terms of ships and rail, with several more roll-on/roll-off ships coming into service this year.
BYD's Thailand plant, its first full-assembly plant outside of China, is still ramping up, and will export some vehicles to neighboring countries. There's also a knockdown plant in Uzbekistan, which puts together partially assembled vehicles.
A Brazil factory is due to open soon. The EV giant should have a Hungary plant up and running by early 2026. BYD also is building or plans to build factories in Indonesia, Turkey, Cambodia and Pakistan.
Turkey has a customs union with the EU. That, along with the Hungary plant, will be two factories for Europe. The Cambodia and Pakistan plants will likely be knockdown plants.
The EV giant had been looking to choose a Mexico site. However, both Trump and Beijing have concerns. India's government recently blocked yet another effort by BYD to set up a major assembly plant in the country.
BYD makes EV buses in California but says it has no plans to enter the U.S. passenger EV market, amid import tariffs and political opposition. However, Trump has said he wants Chinese EV makers to build cars in the U.S.
Tesla Batteries
Tesla traditionally has not mass-produced its own batteries. For lithium-ion batteries, its joint venture partner Panasonic makes the cells and Tesla packages them. It also buys lithium-ion batteries from South Korea's LG. Tesla also buys a lot of lithium iron phosphate (LFP) batteries from China's CATL as well as some LFP batteries from BYD.
Tesla is working on 4680 batteries, first touted at the 2020 Battery Day. The 4680 batteries are standard lithium-ion chemistry, but the EV giant claimed the larger form factor offers the potential for various benefits and cost savings. Tesla's 4680 production has picked up.
Tesla reportedly has made progress on the "dry cathode" problem that should make mass production more viable. But, five years after Battery Day, 4680 batteries aren't at the forefront.
Tesla does get some IRA tax credits from making its own batteries.
Tesla is a major battery storage provider, though it gets its batteries from CATL and BYD.
BYD's Blade Battery, Fast Charging
BYD, meanwhile, is one of the world's largest EV battery makers. Its Blade batteries are a specialized form of lithium ferrous phosphate (LFP) or lithium iron phosphate batteries. BYD supplies third-party EV makers, including Xiaomi, XPeng's Mona subbrand, Nio's Orvo brand and Toyota in addition to Tesla.
Meanwhile, BYD on March 17 unveiled its 1,000-kilowatt superfast charging technology, twice the charging power of Tesla's V4 Supercharger. It can charge at 2 kilometers per second, providing essentially a full charge in roughly five minutes.
Fast charging is a game-changer for EV adoption, eliminating concerns about long waits and range anxiety.
BYD also has begun deliveries of the high-powered BYD Han L sedan and Tang L SUV, the first models that support charging up to 1,000 kW. BYD's Super e-Platform includes Blade batteries that support ultra-fast charging, high-performance electric motors, and a new generation of silicon carbide power chips.
For the first time, BYD is setting up its own charging network, rapidly setting up superfast chargers for the Han L, Tang L and future models.
Fast charging could be a huge boon to BYD's brand and sales, especially BEVs.
Tesla Full Self-Driving
Musk again said on the Q1 earnings call that Tesla will begin paid robotaxi rides in Austin, Texas, this June, with 10-15 Model Y EVs. There will likely be teleoperators involved.
He also said Tesla owners in "many cities" will have unsupervised FSD by year-end, but with widespread autonomy "certainly" by late 2026.
A big selling point of Tesla's self-driving model is that it would work anywhere and anytime, making expansion a snap. But on the Q1 call, Musk said that "it just does seem increasingly likely that there will be a localized parameter set."
That suggests Tesla may do local training — as it reportedly is doing in Austin right now.
Keep in mind that Musk has said for years that Tesla would achieve self-driving "this year" or "next year."
FSD v13 does appear to show a modest boost increase in miles per critical disengagement. But the unofficial FSD Community Tracker, endorsed by Elon Musk several times, signals it's a long way from even approaching robotaxi status.
Tesla said the two-seat Cybercab, with no steering wheel, is still on track for production in late 2026. However, CyberCab obviously needs true self driving to be sold. And Tesla said work on the revolutionary "unboxed" manufacturing process for the Cybercab is "progressing," implying it's not yet finished.
Tesla in late February rolled out some more driver-assist features in China. But the new offerings don't match U.S.-based FSD. It appears that Tesla still needs to get a license to introduce FSD.
Tesla has hoped for a burst of FSD subscriptions and EV sales from a China launch. But BYD and other China EV makers making Level 2 ADAS standard will limit how much the U.S. giant can charge for FSD in China, if anything.
The Tesla FSD price is $8,000 in the U.S., down from a peak of $15,000. The FSD subscription price is $99 a month.
On the Q4 earnings call, Tesla conceded EVs running Hardware 3.0 won't achieve FSD, despite Musk's past pledges that they were "hardware ready." Tesla had previously promised that it would upgrade HW3.0 vehicles if they couldn't achieve self-driving.
BYD Self-Driving
BYD has been spending massively on driver-assist and smart-car software, racing to catch up to industry-leading peers and to lower the costs.
On Feb. 10, BYD announced that it was rolling out Level 2 driver-assistance systems across its lineup.
All models above 100,000 RMB ($13,688) will come standard with L2+ ADAS, even the Seagull, which starts below $10,000.
More-expensive BYD EVs and premium brands will get more advanced ADAS, with many featuring lidar.
Along with fast charging, the smart-car push appears to be a big selling point and should enhance the brand significantly. It's generally assumed that BYD's system will have relatively low ADAS component costs, making it hard for rivals to keep pace. Several rivals have already announced ADAS will come standard.
Tesla's Other Businesses
Tesla has its own Supercharger network in its markets. That's key in the U.S., where charging facilities are limited.
Tesla has deals with most automakers for access to Superchargers in the U.S. They are adopting the charger standard that Tesla uses. Those deals, and some related charging subsidies, boost revenue.
But the move also reduces Tesla's charging moat in the U.S., which encouraged people to buy its EVs.
Tesla also has a solar installation business, but it's been struggling for years.
Tesla also is pursuing a humanoid robot, Optimus, with Musk saying he expects it to be a multitrillion-dollar business, with sales beginning in the first half of 2026.
"We should be thought of as an AI or robotics company," Musk has told investors. "If somebody doesn't believe Tesla is going to solve autonomy, I think they should not be an investor."
BYD's Other Businesses
BYD, notably, makes its own chips. That, along with in-house batteries and other vertical integrations, helps make BYD a low-cost EV maker.
The EV and battery giant also has solar operations.
BYD Co. is largely known for its BYD Auto operations. BYD Electronics, which accounts for an increasingly smaller share of overall revenue, is involved in mostly low-margin businesses such as smartphone components and assembly, including for the Apple iPhone. But margins are improving there as well.
EU Hikes Tariffs On Chinese EVs
The European Union now imposes additional tariffs of up to 35.3% on Chinese BEVs. That's on top of prior 10% duties.
Specifically, the EU will impose an extra 17% tariff on BYD's BEVs. But the new duties don't apply to PHEVs, a big plus for BYD. The upcoming Hungary and Turkey plants will let BYD sidestep EU tariffs altogether in the future.
The EU only imposes a 7.8% extra tariff on Tesla's China made-vehicles. Tesla Shanghai exports the Model 3 to the EU.
The EU and China are in talks to remove the new BEV tariffs, in part due to Trump tariffs on Europe.
Trump Election Impact
Elon Musk was a huge supporter of Donald Trump's election bid, contributing hundreds of millions of dollars and actively campaigning with him. The president has rolled back fuel-economy standards, which has a mixed impact. Getting rid of the $7,500 tax credit on EVs would be a negative for Tesla in the short run.
On April 24, the Trump administration announced a federal framework for self-driving vehicles, something Musk has argued for. But a framework wouldn't override state approvals. And regulation isn't the main hurdle for Tesla robotaxis, which face no restrictions in states such as Texas and Florida.
Trump tariffs on autos may help Tesla, because its U.S. EVs are largely made in the U.S., while rivals face higher costs and shortages. But Canada has cut off Tesla from EV rebates.
Meanwhile, Musk's high-profile role in the Trump administration — along with his political comments regarding the U.S., U.K., Germany and Ukraine — appear to be further eroding Tesla's brand in the U.S. and Europe, especially with groups most likely to buy an EV.
On the Q1 earnings call, Musk said he'll reduce his work with the Trump administration.
Massive Trump tariffs on Chinese goods won't have much impact on BYD directly but could hit China's economy. Tesla's China sales also could be hurt. Tesla has halted China orders for the made-in-U.S. Model S and X.
Huge U.S. tariffs on Chinese goods will impact Tesla Energy's CATL battery imports.
Tesla Earnings
In Q1 2025, Tesla earnings dived 40% vs. a year earlier while revenue fell 9% to $19.34 billion, both missing significantly lowered views. Automotive revenue tumbled 20%.
Auto gross margins excluding regulatory tax credits sank to 12.5%, the lowest since 2012. Tesla Energy, still growing fast, boast high margins.
Operating income was $399 million. Regulatory credits were $595 million, meaning the core auto and energy business had an operating loss.
Net income was $409 million, or $934 million adjusted.
Tesla now pulled 2025 guidance, after forecasting some growth on the Q4 call and 20%-30% on the Q3 call.
Analysts, who have slashed EPS and delivery targets in recent months, now forecast Tesla earnings will fall for a third straight year.
BYD Earnings
BYD's Q1 earnings per share leapt 98% to 43 cents, the second straight quarter of accelerating growth. Revenue grew 36% to $23.5 billion, below forecasts.
Net income came in $1.26 billion, up 100.4% in local currency terms, after BYD gave preliminary figures a few weeks earlier.
That easily topped Tesla's adjusted net income for the first time. It's notable that this occurred in the seasonally weak Q1.
Tesla Stock Technicals
Tesla stock is down 28.9% in 2025 as of May 2, one of the bigger losers in the S&P 500.
But shares have rebounded in the past few weeks, reclaiming the 50-day line. TSLA stock is now testing the 200-day line and late March highs. A clear move above the 200-day line would offer an aggressive entry, but there would still be a huge amount of overhead.
The post-earnings spike underscores once again that the overwhelming majority of Tesla's valuation is on self-driving.
BYD Stock Technicals
BYD stock is up 46.3% in 2025 as of May 2.
Shares fell in the latest week, but finished back above the 50-day line and nearing the March 24 peak of 54.60. An emerging consolidation is forming. Investors could view BYD's chart as a mini-cup-with-handle with a 53.35 buy point.
BYD, listed in Hong Kong and Shenzhen, trades over the counter in the U.S. Its U.S. shares often have mini-gaps as well as opening-trade mini-spikes or tumbles before settling down.
Tesla Vs. BYD Market Cap
Tesla has a market cap of $925.1 billion as of May 2. That's far above BYD's $135.7 billion.
Tesla Stock Vs. BYD Stock
BYD sells far more EVs than Tesla, and has grabbed the lead in BEVs, as well as revenue and now net income. More broadly, BYD in many ways is the EV maker Tesla has claimed or aspired to be. BYD makes its own batteries and chips, and sells those batteries to third parties such as Tesla. Musk has talked about making a $25,000 Tesla, though he recently dismissed the idea. BYD makes EVs profitably at far below $25,000, but has a variety of EVs at much higher price points.
Tesla's pipeline is thin. The Cybertruck is a money loser with sluggish demand. The Model Y refresh does not appear to be providing much of a sales boost.
BYD has entered most of the world outside of the U.S., with overseas sales soaring in 2025. Its model lineup continues to expand dramatically, with big moves upscale and adding tech to its more-affordable offerings.
BYD's broad lineup and next-generation hybrid system means it's reaping the benefits of global demand for long-range PHEVs. Fast-charging could swing the scales back toward BEVs.
Tesla stock is rebounding on latest self-driving hopes, but is still down sharply this year on weakening fundamentals, a damaged brand and mounting competition. BYD stock, meanwhile, has soared on booming growth, global expansion and its own driver-assist and charging efforts.
Both stocks are close to buying opportunities.
Keep your eyes on the BYD and Tesla rivalry, as well as the pros and cons of Tesla stock vs. BYD stock.
Please follow Ed Carson on X/Twitter at @IBD_ECarson and Threads at @edcarson1971 for stock market updates and more.
