BYD’s quarterly revenue exceeded Tesla earnings of $25.18 billion. Tesla’s market cap is $826 billion, and that stock is trading at a price to earnings (P/E) of 122 versus BYD’s market cap of $114 billion and a P/E of 22. Add more absurdity.
 

BYD has seen its quarterly revenues soar

BYD reported over 200 billion yuan ($28.2 billion, £21.8 billion) in revenue from July to September, marking a 24% increase compared to the same period last year. This figure surpasses Tesla's quarterly revenue of $25.2 billion.

Despite this revenue growth, Tesla still sold more electric vehicles (EVs) than BYD in the third quarter.

In China, EV sales have received a boost from government subsidies aimed at encouraging consumers to switch from petrol-powered cars to electric or hybrid models. BYD also achieved a monthly sales record in the final month of the quarter, indicating strong momentum for the country’s top-selling car manufacturer.

However, there is increasing pushback internationally against the Chinese government's support for domestic automakers like BYD.
 

BYD Faces Tough Competition in China

BYD is a leading electric vehicle (EV) manufacturer in China, the world’s largest automotive market, where it faces fierce competition from both domestic and international rivals.

In its home market, Tesla, led by Elon Musk, poses a significant challenge. The Model Y was the best-selling battery electric car in China in September, according to the Chinese automotive website Autohome, with BYD's Seagull closely following in second place.

The competitive landscape is expected to intensify further as European Union tariffs on Chinese EVs came into effect this week, despite China’s objections.

On Wednesday, the EU announced increases in tariffs on Chinese electric vehicles, which could reach as high as 45.3%. These additional tariffs range from 7.8% for Tesla to 35.3% for SAIC Motors, stacking on top of a standard 10% import duty on all electric vehicles.

While the tariffs on BYD and Tesla were lower than initially proposed, both companies are taking steps to increase production in Europe to mitigate the impact of these duties. Recent reports indicate that Tesla has received approval to double the capacity of its Berlin plant.
 

July to September, Tesla maintained its lead over BYD

BYD, which accounted for over one-third of total EV and plug-in hybrid sales in China this year, set a new monthly sales record in September and achieved a record high in quarterly sales for the third quarter.

The local champion and its competitors, including Tesla, have benefited from expanded old-for-new stimulus measures promoting greener vehicles. According to industry data, China's car sales rebounded last month, ending a five-month decline due to these subsidies.

By late October, 1.57 million applicants had registered to benefit from a national subsidy of more than $2,800 for trading in older cars for more environmentally friendly models, as reported by official sources.