TLDR
- BYD aims to sell 50% of vehicles outside China by 2030, up from current 10%
- BYD has overtaken Tesla in BEV sales for two consecutive quarters
- European sales tripled in Q1 2025 to over 37,000 vehicles
- BYD’s net income surpassed Tesla’s for the first time in Q1 2025
- Wall Street gives BYD a Strong Buy rating with 33% upside potential
The Chinese automaker BYD Company plans to dramatically expand its global reach, targeting to sell half its vehicles outside China by 2030, according to Reuters. The company is attempting to replicate its impressive domestic growth in international markets.
This goal is ambitious considering about 90% of BYD’s 4.27 million vehicle sales last year came from China. The company sold 417,204 units overseas in 2024, representing 72% growth year over year.
BYD’s executives have reportedly shared this 2030 target with investors in small group meetings since late 2024. They’ve highlighted European expansion as critical to achieving these international goals.
After facing some setbacks, BYD has revitalized its European business through dealer network expansion and hiring executives familiar with local markets. The strategy appears to be working.
European sales, including the UK, more than tripled in Q1 2025 to over 37,000 vehicles from about 8,500 in the prior-year quarter.
Production Expansion Underway
BYD is building a global manufacturing footprint to support its international push. Its Thailand plant, the first full-assembly facility outside China, is ramping up and will export to neighboring countries.
A Brazil factory is set to open soon. BYD’s Hungary plant should be operational by early 2026.
The company is also building or planning factories in Indonesia, Turkey, Cambodia and Pakistan. The Turkey and Hungary plants will serve European markets, helping BYD sidestep EU tariffs.
BYD has been looking at Mexico locations but faces concerns from both Trump and Beijing. India’s government recently blocked another attempt by BYD to establish a major assembly plant there.
BYD vs Tesla: The EV Race Intensifies
BYD has emerged as Tesla’s most formidable competitor. The Chinese company’s vehicle sales now more than double Tesla’s and are three times higher in Q4 2024.
For all-battery electric vehicles (BEVs), BYD has seized the lead from Tesla in the past two quarters. In April 2025, BYD’s BEV sales outpaced its plug-in hybrid sales for the first time since January 2024.
BYD sold 1,000,804 EVs in Q1 2025, down 34.3% from Q4’s record but up 59.8% year over year. April sales reached 380,089, up 21.3% from a year earlier.
BYD’s financial performance has also strengthened. Q1 earnings per share jumped 98% to 43 cents, with revenue growing 36% to $23.5 billion.
Most notably, BYD’s net income of $1.26 billion topped Tesla’s for the first time, despite Q1 typically being seasonally weak.
Technological Advantages
BYD’s competitive edge extends beyond just sales volume. The company makes its own batteries and chips, contributing to its status as a low-cost EV maker.
In March, BYD unveiled 1,000-kilowatt superfast charging technology, twice the power of Tesla’s V4 Supercharger. This can provide essentially a full charge in about five minutes.
The company is rolling out Level 2 driver-assistance systems across its lineup. All models above 100,000 RMB ($13,688) will come standard with these features, even the Seagull, which starts below $10,000.
BYD’s product range spans from affordable EVs starting around $10,000 to premium vehicles costing up to $150,000 under its Denza, FangChengBao and Yangwang brands.
Wall Street remains highly bullish on BYD stock, with a Strong Buy consensus rating based on 12 unanimous Buys. The average price target of $66.21 implies 33% upside potential. The stock has rallied about 47% year-to-date as of May 8.
In contrast, Tesla stock has fallen 29.5% in 2025. While Tesla maintains a much higher market cap of $917.4 billion compared to BYD’s $136.1 billion, the gap in operational performance continues to narrow.
BYD’s April exports hit a record for a fifth straight month at 79,086 units. These overseas sales typically generate higher margins than domestic sales, further strengthening the company’s financial outlook.
For investors tracking the EV market, BYD’s aggressive global expansion and technological innovations present a compelling growth story as the company works to transform from a Chinese EV leader to a truly global automotive powerhouse.
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