It still does not surpass Tesla in profits, but the Chinese BYD already has more income and will soon sell more electric cars

There are two manufacturers in contention to be the world leader in electric cars. The best known is Tesla, the company run by Elon Musk. The other is BYDwhich has just presented its third quarter results and for the first time has surpassed Tesla in revenue.

The income from China’s best-selling automaker increased by 24 percent up to 201.1 billion yuan during the three months between July and September, equivalent to 26,000 million euros to change.

Revenue was below analyst estimates, but exceeded the €23.1 billion in turnover that Tesla had during the same period. It is the first time that the Chinese manufacturer surpasses Tesla in this regard.

The net income They increased by 12 percent, reaching a record of 11.6 billion yuan (1.5 billion euros), exceeding estimates. In this metric, BYD continues to be behind Tesla, which had profits of 2 billion euros in the same quarter.

The record revenue is preceded by record sales. BYD sold 1.12 million electric and plug-in hybrid vehicles in just three months, with a gross margin of 21.9 percent. The Chinese manufacturer, which leads the Chinese market in absolute terms, can close 2024 as the largest electric car manufacturer in the world, surpassing Tesla.

In the first nine months of the year, BYD had revenues of 502.3 billion yuan (64.85 billion euros), with profits of 25.2 billion yuan (3.25 billion euros).

Hybrid vehicles contributed largely to BYD’s revenue growth, although it also has a well-stocked range of fully electric models. In addition to offering products with a good relationship between performance, technology and price, part of BYD’s success is explained by the fact that have a vertically integrated supply chain: They manufacture many parts in-house, including batteries, electric motors and other electronic components, as well as combustion engines, offering highly competitive economies of scale.

BYD’s outlook for the end of the year looks very positive. The company is on track to meet its sales goal of 4 million vehicles globally this year; As of September, 2.74 million units have been sold. To meet the objectives, it will need to sell about 500,000 cars per month between now and the end of the year, an impressive figure but achievable if we look at the evolution of recent months.

The last three months of the year are usually good in terms of sales and to this is added that internal demand in China has been rebounding in recent months, driven by increases in aid to buy electric cars.