The EV Giant You Can’t Buy in the US

The electric vehicle landscape is being reshaped, and a Chinese company is leading the charge, surpassing even Tesla in key areas. That company is BYD.

Based in Shenzhen, China, BYD outpaced Tesla in total sales last year. They’ve also recently introduced groundbreaking battery charging technology, promising an impressive 250 miles of range with just a five-minute charge. This puts them ahead of Tesla’s Superchargers, which provide 200 miles in 15 minutes. Moreover, BYD launched “God’s Eye,” a cutting-edge driver-assistance system similar to Tesla’s Full Self-Driving, offered at no additional cost on many models.

These innovations are just a glimpse of how BYD is surging ahead, challenging Tesla’s dominance in sales, technological advancements, and affordability.

“They’re not resting on their laurels,” says Tu Le, founder of Sino Auto Insights. “They’re pushing the boundaries and setting the standard for the entire industry.”

After establishing itself as a dominant force in China, the world’s largest auto market, BYD is now expanding globally. However, one notable absence is the United States, effectively blocked by 100% tariffs on its passenger vehicles.

Here’s a deeper look into the ascent of this Chinese EV manufacturer and its impact on the global electric car market.

What is BYD?

Founded in 1995 by Wang Chuanfu in Shenzhen, BYD is China’s leading automaker. They export electric taxis, buses, and other vehicles to markets in Europe, South America, Southeast Asia, and the Middle East.

In China, BYD captured 32% of new energy vehicle sales in 2024, including hybrids, significantly exceeding Tesla’s 6.1% market share, according to the China Passenger Car Association. (BYD produces both battery-electric and hybrid vehicles, while Tesla focuses solely on battery-powered EVs.)

BYD reported $107 billion in revenue in 2024, a 29% increase from the previous year, with deliveries of 4.27 million vehicles, including hybrids. In comparison, Tesla’s revenue was $97.7 billion, with 1.79 million battery-powered vehicles delivered. Tesla’s annual deliveries saw a slight decrease of 1.1% last year.

While BYD’s battery-powered EV shipments of 1.76 million were slightly less than Tesla’s, analysts are optimistic about BYD’s potential as it expands internationally. The majority of BYD’s shipments were within China, with only 10% exported.

“We believe sales momentum will remain robust for 2025, and BYD will be able to retain its leadership with the rollouts of new-generation models equipped with the advanced driver-assistance system,” noted Vincent Sun, a senior equity analyst at Morningstar.

While many associate BYD with “Build Your Dreams,” Wang clarified that the name originally had no specific meaning. It was simply a unique combination of Chinese characters. The “Build Your Dreams” slogan was later developed for marketing purposes.

Popular BYD Models

BYD’s best-selling models, the Qin and Song, appeal to a wide range of consumers due to their affordability. The Qin, a compact sedan, comes in both plug-in hybrid and fully electric versions. The Song is a series of compact crossover SUVs.

Unlike Tesla, which targets the premium market, BYD has built its success on accessibility. Their entry-level model starts at just over $10,000 in China, significantly cheaper than Tesla’s Model 3, which sells for over $32,000.

Although BYD’s passenger vehicles are not yet available in the US due to tariffs, their electric buses are already in operation in California.

The Visionary: Wang Chuanfu

Wang Chuanfu was born in 1966 in rural Anhui province. Sadly, he was orphaned in middle school after the early deaths of both parents, according to Chinese state media. His older brother supported him and his education.

Wang earned his master’s degree at the Beijing Nonferrous Metals Research Institute. The institute later established a battery company in Shenzhen, where Wang was assigned.

Recognizing an opportunity, Wang started BYD with a team of about 20 people and 2.5 million yuan ($351,994) borrowed from his cousin, according to reports.

He achieved early success by leveraging China’s low labor costs, disrupting an industry previously dominated by Japanese companies.

In 2003, Wang ventured into the automotive industry, acquiring a struggling state-owned automaker for 269 million yuan ($38 million). Investors were initially concerned, causing the company’s shares to drop by over 30%. However, Wang remained committed.

Wang explained that the acquired automaker lacked technological capabilities, so he purchased used cars from around the world and disassembled them for study.

“Toyota, as the world’s leading automaker, has craftsmanship, design, and products worth learning from — only by standing on its shoulders can we reach new heights,” he stated.

His vision was eventually validated with a $230 million investment from Warren Buffett in 2008, gaining him global recognition.

The Key to Affordability

BYD began as a battery manufacturer, a strategic advantage that Wang believes was crucial to their success.

“The bottleneck for electric vehicles is the battery,” he said. “Mastering battery technology or accurately predicting its future direction is essentially setting the strategic course for the entire EV industry.”

Like Steve Jobs and Elon Musk, Wang, who studied metallurgical chemistry, is passionate about engineering details. He dedicates a significant portion of his time to technology, approximately 60% to 70%, focusing the remainder on management.

One notable innovation is BYD’s blade battery, a lithium iron phosphate battery introduced in 2020. Its unique design maximizes space utilization within the battery pack while minimizing fire risks upon damage.

Beyond batteries, BYD manufactures a high percentage of its components in-house, reducing reliance on external suppliers. This vertical integration allows for easier production scaling and significant cost reduction, according to analysts.

BYD is also known for its aggressive pricing strategy amidst the ongoing price war in China and actively seeks discounts from its suppliers.

US Absence Explained

Currently, BYD and other Chinese EVs are largely excluded from the US market due to tariffs. However, analysts believe that these trade barriers may create a “false sense of security.”

“They’re not planning to take their foot off the gas on research and development spend this year, so it’s going to be a consistent onslaught probably through the end of this decade,” one analyst said.

Despite the lack of a US presence, BYD is expanding elsewhere.

Wang has committed to increasing total shipments by nearly 30% this year and almost doubling overseas deliveries to over 800,000 vehicles, according to reports.

However, there are some challenges.

“Aside from the geopolitics, I think there are more challenges in how they operate in different countries,” said Lei Xing, an independent analyst focusing on China’s auto industry.

In Brazil, authorities reported finding workers in “slavery-like conditions” at a BYD construction site in December. The company has denied these allegations.

In Mexico, approval for a local plant is reportedly delayed due to concerns about potential technology transfer to the US, according to the Financial Times.

Despite these challenges, some analysts believe BYD has become a formidable force. With a strong focus on technology, BYD is poised to deliver new advancements in both price and innovation.

“They’re just starting,” he said.