BYD (BYDDY) Stock: China’s EV Champion Races Ahead as Tesla Stumbles in Q1

BYD (BYDDY) Stock: China’s EV Champion Races Ahead as Tesla Stumbles in Q1

TLDR

• BYD delivered 416,000 electric vehicles in Q1 2025, surpassing Tesla’s 337,000
• BYD expects Q1 net income of $1.2-1.4 billion, closing gap with Tesla
• BYD maintains 29.3% market share in China’s NEV market for March
• Tesla ranked third in China’s NEV market with 7.5% share, up from 3.8% in February
• BYD stock jumped 4.8% on earnings guidance while Tesla fell 4.9%

BYD, the Chinese electric vehicle manufacturer, has strengthened its position against Tesla in the first quarter of 2025. The company’s stock jumped 4.8% in overseas trading after releasing better-than-expected financial guidance for the period.

BYD announced it expects first-quarter net income between $1.2 billion and $1.4 billion. The $1.3 billion midpoint exceeds Wall Street’s forecast of $820 million. This puts BYD on track to match or potentially surpass Tesla’s projected earnings of $1.4 billion for the same quarter.

Tesla’s earnings estimates have been revised downward from $1.7 billion following disappointing first-quarter delivery results. The American EV maker delivered approximately 337,000 vehicles, marking a 13% decrease year over year.

Delivery Milestone

In contrast, BYD delivered nearly 1 million cars in the first quarter, representing a 58% increase year over year. Of these, about 416,000 were all-electric vehicles, outpacing Tesla’s electric deliveries for the quarter.

This marks the third time BYD has delivered more all-electric cars than Tesla in a quarter. Another milestone was reached when BYD’s automotive sales topped Tesla’s in the fourth quarter of 2024, the first time this had occurred.

If BYD reaches the high end of its guidance and Tesla performs slightly below estimates, BYD could make more money than Tesla for the quarter. This would add another achievement for the Chinese automaker and pose a further challenge to Elon Musk’s company.

Tesla may need to boost its vehicle output to reverse this trend. The company plans to launch a lower-priced EV this year, though investors have yet to see a prototype.

China Market Dominance

BYD’s stock has risen 24% so far this year and 64% over the past 12 months. The company’s growth trajectory remains strong, having delivered approximately 4.6 million passenger vehicles over the past year, a nearly 50% increase. About 1.9 million of these vehicles were all-electric.

In comparison, Tesla delivered about 1.7 million all-electric cars over the same period, representing a 2% decrease year over year. Tesla’s stock fell 4.9% on Tuesday, closing at $221.86, leaving shares down about 45% in 2025.

Recent data from the China Passenger Car Association shows BYD maintained its lead in China’s new energy vehicle (NEV) market in March with retail sales of 290,209 units. This gave the company a 29.3% market share, slightly up from 29.2% in February but down from 36.6% in March 2024.

Geely ranked second in China’s NEV market with 110,894 vehicles sold and an 11.2% market share. Tesla moved up four spots from February to rank third, delivering 74,127 vehicles for a 7.5% share, a sharp gain from its 3.8% share in February.

For the first quarter of 2025, BYD led China’s NEV market with 696,162 units sold and a 28.8% share. Geely followed with 321,779 units and a 13.3% share, while Tesla ranked fifth with 134,607 units and a 5.6% market share.

China’s NEV segment showed recovery after two months of sequential decline. Total NEV retail sales reached 991,000 units in March, up 45% from February, pushing the segment’s penetration rate back above 50%.

BYD also topped China’s broader passenger vehicle market, which includes internal combustion engine models, with a 15.0% market share.

The competitiveness between BYD and Tesla continues to evolve as both companies aim to capture larger shares of the global EV market. BYD’s strength in its home market of China provides a solid foundation for its growth.

Tesla will need to address its recent delivery challenges and successfully launch its planned lower-priced model to regain momentum against its Chinese rival.

The latest data suggests a shifting landscape in the global EV industry, with Chinese manufacturers gaining ground against established Western competitors.

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