BYD Overtakes Tesla in Revenue: A New Chapter in the EV Race

For the first time, BYD's quarterly revenue has surpassed Tesla, marking a significant milestone in the electric vehicle industry. On the evening of October 30, BYD reported its financial results for the third quarter of 2024.

BYD achieved a revenue of RMB 2011.25 billion for the quarter, representing a year-over-year increase of 24.04%, and surpassing market expectations of RMB 2048 billion. In comparison, Tesla's revenue for the same period was approximately RMB 1793.5 billion. BYD also reported a net profit attributable to shareholders of RMB 116.07 billion, an 11.47% increase from the previous year, with basic earnings per share rising by 11.73% to RMB 4 per share.

Despite a slight dip in its Hong Kong-listed shares on Wednesday, BYD has experienced a significant rebound of over 70% from the lows in February, translating to a year-to-date increase of over 40%. This robust performance is largely attributed to strong sales buoyed by trade-in incentives and other stimulating policies.

In the third quarter, BYD sold 1.1349 million vehicles, a 37.7% year-over-year increase, exceeding market projections of 1.1 million units. For the first nine months of the year, the company sold 2.748 million vehicles, marking a 32.1% rise from the previous year.

The announcement of BYD's financial results has also led to a notable decrease in short selling, with the proportion falling to 0.9% from 7.7% earlier this year. This suggests increased market confidence, reinforced by lower hedging costs in the options market against potential stock price declines.

Looking ahead, analysts emphasize that BYD's international sales performance will be crucial in determining future stock movements. The company has sold approximately 300,000 units overseas this year, still short of its 450,000 target. Investors are expected to focus on BYD's high-end brands and overseas expansion to assess potential growth in the fourth quarter.