Tesla and BYD are the world's largest electric-vehicle makers.
It's not much of a race anymore. China EV and battery giant BYD's EV sales are more than double those of Tesla. BYD has even taken the crown for all-battery electric vehicles (BEVs).
Tesla earnings plunged in Q1, while BYD boomed, passing its U.S. rival on yet another metric: net income.
With an aging lineup and serious brand issues hitting EV sales, Musk is betting on robotaxis, robots and artificial intelligence. A limited robotaxi launch in Austin, Texas, is imminent.
BYD has launched driver-assist systems across its lineup at no added charge. It's also started selling EVs that can be charged in five minutes. BYD has its own issues, slashing domestic prices by up to 34% recently, but surging overseas sales will help mitigate that.
Tesla stock has been a loser in 2025, plunging recently on the Elon Musk feud with President Donald Trump. BYD stock has been a big winner this year, though it sold off on the automaker's huge price cuts.
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 much-lowered analyst estimates.
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.
Passenger BEV sales were 416,388, easily beating Tesla for a second straight quarter.
April-May sales were 762,565, including 400,109 BEVs. BYD's BEV sales are now outpacing plug-in hybrids (PHEVs) once again.
Tesla doesn't release monthly sales, but data point to continued weakness. Q2 deliveries should top the weak Q1, but it may be close. The year-over-year decline may be bigger.
BYD Price War
Meanwhile, BYD is offering discounts of up to 34% discounts on its BYD-branded EVs through June, especially on the lower end. As the low-cost leader due to in-house production and squeezing suppliers via to its heft, the EV giant is putting heavy pressure on rivals. Plus, BYD has the advantage of booming overseas sales, which boast significantly higher margins. Still, BYD will likely also feel the pain from its price war.
Several rivals have also announced some big price cuts. Tesla recently announced a new referral incentive for different paint options.
Tesla EV Lineup
The new Tesla Model Y hasn't boosted sales much, with cheap financing already offered to drum up demand.
The Cybertruck, Tesla's first new passenger EV in the past five years, is a bust. Overall sales of the Model S, X and Cybertruck were just 12,881 in Q1.
Tesla now aims to launch "affordable" EVs that will resemble the Model Y or 3. Several reports have stated that the first cheap EV would be a stripped-down Model Y. Tesla is sticking to its plan for output to start by mid-year, though mass production could be months away. It could cannibalize Model Y sales, and would face extremely fierce competition in China.
Otherwise, Tesla's EV pipeline is thin. The Cybercab needs actual self-driving, as well as the "unboxed" manufacturing process that Tesla hasn't figured out yet.
The EV giant has delivered a few dozen Tesla Semi trucks to PepsiCo and a few other customers. The specs and price are unknown, though the price tag reportedly has risen. Tesla recently said it expected mass production in 2026, but Semi timelines have often slipped by a factor of years.
Five Stocks Near Buy Points Ahead Of U.S.-China Trade Talks
BYD Expansion
BYD sells BEVs and PHEVs from below $10,000 to $150,000, including its premium Denza, FangChengBao and Yangwang brands, with a steady stream of new or upgraded models.
Improved driver-assist systems and faster charging are expanding to more of BYD's lineup.
Overseas sales are surging, a trend that will likely continue. Export logistics have improved, with several more roll-on/roll-off ships coming into service this year. BYD outsold Tesla in Europe in BEVs in April, while PHEV sales also are strong.
A Hungary plant in early 2026 and a Turkey plant later that year will let BYD sidestep EU tariffs.
BYD's Thailand plant, its first full-assembly plant outside of China, is still ramping up. A Brazil factory will open in late 2025. BYD also is building factories in Indonesia and Turkey, with knockdown plants eyed for Cambodia and Pakistan.
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.
Tesla Vs. BYD Batteries
Tesla traditionally has not mass-produced its own batteries, working with partner Panasonic while buying batteries from South Korea's LG, China's CATL as well as BYD itself.
Tesla is working on 4680 batteries, first touted at the 2020 Battery Day. But the touted benefits have been slow going, while rivals' batteries have improved.
Tesla is a major battery storage provider, but gets its batteries from CATL and BYD. The Tesla Energy business has been booming, with strong margins. But Trump tariffs, threats to IRA tax credits and increased competition all pose near or long-term threats.
BYD is one of the world's largest EV battery makers. Its Blade batteries are a form of lithium ferrous phosphate (LFP). BYD supplies third-party EV makers, including Xiaomi, XPeng's Mona subbrand, Nio's Orvo brand, Toyota as well as Tesla.
Meanwhile, BYD now has unveiled its 1,000-kilowatt superfast charging, providing essentially a full charge in roughly five minutes. BYD's BYD Han L sedan and Tang L SUV are the first models that support charging up to 1,000 kW.
BYD is setting up its own network of superfast chargers.
Join IBD experts as they analyze leading stocks and the market on IBD Live
Tesla Full Self-Driving
Elon Musk has promised actual self-driving "this year" or "next year" for about a decade. But will it be this coming week?
Tesla will begin paid robotaxi rides in a geofenced, heavy mapped part of Austin, Texas, in June, starting with some 10 Model Ys. Teleoperators will be involved.
Musk says there will be a rapid expansion, moving to multiple cities. Tesla owners with Full Self-Driving will get true self-driving by late 2026, Musk now says.
However, the unofficial FSD Community Tracker, endorsed by Musk several times, signals FSD is a long way from truly unsupervised.
Meanwhile, BYD has spent massively on driver-assist and smart-car software, racing to catch industry-leading peers.
On Feb. 10, BYD announced that it was rolling out Level 2 driver-assistance systems across its lineup. More-expensive BYD EVs and premium brands will get more advanced ADAS, with lidar.
Along with fast charging, the smart-car push should enhance the brand. BYD's system has 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. Most automakers have gained access to U.S. Superchargers. Those deals, and some related charging subsidies, boost revenue, but also reduce Tesla's charging moat.
Tesla has a solar installation business, but it's struggled 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 2026. But Musk timelines often slip. Many other companies are developing humanoid robots. The use case for humanoid robots in factories or warehouses is still unclear. Home health care is one potential use case.
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.
The Trump Effect
Elon Musk was a huge Trump supporter in 2024, with TSLA skyrocketing to record highs in late 2024 on bets that a Trump presidency would pay off for Tesla, with TSLA stock skyrocketing to record highs in late 2024.
Tesla regulatory probes were put on the backburner. President Trump rolled back fuel-economy standards, which will have a mixed impact on Tesla. A federal framework for self-driving vehicles doesn't override state regulation. Tesla faces no self-driving regulations in Texas and Florida.
Meanwhile, the House-passed Trump tax bill scraps the $7,500 tax credit on EVs and imposes a $250 annual fee on BEV ownership. Tesla also could lose big credits for the Tesla Semi, battery production and more. The Senate could make changes, but the ultimate legislation could have serious impacts on Tesla's financials.
Trump tariffs raise the cost of CATL batteries that Tesla uses for storage products.
And all that was before the Musk-Trump blowup. In theory, Trump could ramp up regulatory pressure on Tesla. A bigger problem is that Musk risks alienating Trump supporters. That's after Musk tarnished Tesla's brand with core upscale urban customers in the U.S. and Europe.
Tesla Earnings
In Q1 2025, Tesla earnings dived 40% vs. a year earlier while revenue fell 9% to $19.34 billion, both far below lowered views. Auto gross margins excluding regulatory tax credits were the lowest since 2012. Tesla Energy, still growing fast, boasts high margins.
Tesla would have had an operating loss excluding $595 million in regulatory credits, which seem likely to trend lower.
Tesla pulled 2025 delivery guidance after the Q1 release, after forecasting some growth on the Q4 call and 20%-30% on the Q3 call.
Analysts have slashed EPS and delivery targets in recent months, and now forecast Tesla earnings will fall for a third straight year. Consensus forecasts seem likely to keep sliding.
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. That easily topped Tesla's adjusted net income — $934 million — for the first time.
Investors see 2025 EPS rising 34%, but the price war could crimp profits.
Tesla Stock Technicals
Tesla stock is down 26.9% in 2025 as of June 6.
Shares ran past an aggressive entry just above the 200-day line on May 9, then cleared another early entry in late May. But shares crashed 14.8% in the week ended June 6 amid the Trump-Musk feud.
BYD Stock Technicals
BYD stock is up 54% in 2025 as of June 6.
Shares hit a record 61.51 on May 23, then sold off on BYD's price war. Shares tumbled far below a buy point and undercut the 50-day line, though they've regained the latter.
The stock may need time to set up again.
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.
On May 19, Hong Kong's Hang Seng announced that BYD would join the Hang Seng Tech Index of the top 30 tech companies before the open on June 9.
Tesla Vs. BYD Market Cap
Tesla has a market cap of $950.6 trillion as of June 6. That's far above BYD's $142.8 billion. The overwhelming majority of Tesla's valuation is on self-driving.
Best Growth Stocks To Buy And Watch
Tesla Stock Vs. BYD Stock
BYD sells far more EVs than Tesla, and now leads in BEVs, revenue and net income. BYD makes a variety of EVs all through the price scale, with new models and big tech moves in recent months
BYD has entered most of the world outside of the U.S., with overseas sales soaring.
Tesla's EV pipeline is thin, with the Cybertruck a bust. Tesla's EV business faces enormous challenges with a damaged brand and aging lineup. Meanwhile, competitors keep moving forward while IRA tax credits are likely to go away.
Tesla stock is down sharply in 2025 amid that backdrop and now the Musk-Trump feud.
Self-driving is the big hope for Tesla and TSLA stock.
BYD stock has taken a hit, but is up sharply in 2025.
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.
