TLDR
- BYD surpassed Tesla in global sales of electrified vehicles and is expanding into luxury market with Denza Z
- BYD forecasts Q1 profit growth between 107% to 143%, with EPS expected between $0.35 to $0.42
- Company sold over 1 million NEVs in Q1 2025, a 59.8% increase from last year
- BYD faces mounting trade barriers, including 247.5% US tariffs and EU investigations
- BYD’s technological innovations include 5-minute fast charging and “God’s Eye” autonomous driving system
BYD Company (BYDDY), China’s electric vehicle powerhouse, is setting new records in sales and innovation while navigating a complex landscape of international trade barriers. The company’s steady rise continues as it prepares to report what analysts expect will be impressive Q1 earnings tomorrow.
BYD sold more than one million new energy vehicles (NEVs) in the first quarter of 2025. This represents a 59.8% jump from the same period last year.
The Chinese automaker has been on a remarkable growth trajectory. Sales surged 60% in Q1, positioning BYD firmly ahead of its Western competitors in the electrified vehicle market.
BYD recorded $107 billion in sales for 2024, a 29% increase from the previous year. The company delivered 4.27 million cars, including both battery-powered vehicles and hybrids.
By comparison, Tesla’s 2024 revenue was $97.7 billion with 1.79 million vehicle deliveries. Tesla’s recent quarterly report showed a larger-than-expected drop in revenue, with overall sales falling 9% and car sales dropping 20%.
Luxury Ambitions
BYD is not content dominating just the affordable EV segment. The company unveiled its premium Denza Z sports car at Auto Shanghai on Wednesday.
The flashy deep-blue model signals BYD’s intentions to compete with Western luxury brands like Porsche and Mercedes-Benz. The Denza brand was originally a joint venture with Mercedes but is now fully owned by BYD.
“BYD only knows how to play offense,” said Tu Le, founder of consultancy firm Sino Auto Insights. “Their consistent and frequent vehicle and feature launches keep their competitors on their heels.”
The timing of the Denza launch appears strategic. Porsche reported a 28% sales decline in China last year, creating an opening in the luxury market.
BYD’s high-end Denza N9 flagship SUV starts at 389,800 yuan ($53,453). This positions it well above the company’s popular Song Plus SUV, which starts around $18,500.
International Expansion Meets Trade Barriers
BYD has set an ambitious target to double its overseas sales to more than 800,000 cars in 2025. The company’s international sales already doubled to over 206,000 units in Q1.
However, this global expansion faces serious headwinds. The United States has escalated tariffs on Chinese EV imports to a staggering 247.5%.
This combines the previous 100% tariff with an additional 145% introduced by the Trump administration in April 2025, plus a 2.5% import duty. These tariffs effectively price BYD vehicles out of the American market.
European markets are also becoming more challenging. The EU has imposed hefty duties on EV imports from China and is investigating subsidies related to BYD’s planned factory in Hungary.
Despite these challenges, BYD plans to maintain its cost advantage by assembling vehicles in local markets, according to the company’s chairman.
Technology Leadership
BYD continues to push technological boundaries. In February, the company launched “God’s Eye,” an advanced driver-assistance system that rivals Tesla’s Full Self-Driving feature.
Last month, BYD unveiled a battery charging technology that adds 250 miles of range in just five minutes. This outpaces Tesla’s Superchargers, which take 15 minutes to add 200 miles.
The competition remains fierce, however. China’s Contemporary Amperex Technology (CATL) recently introduced an upgraded battery promising an even longer range of 320 miles.
Financial Outlook
BYD forecasts impressive growth for Q1, with net income expected between RMB 8.5 billion and RMB 10 billion ($1.16 billion to $1.37 billion). This would represent a 107% to 143% increase from last year’s RMB 4.1 billion ($560 million).
Analysts predict earnings per share between RMB 2.91 and RMB 3.42 ($0.35 to $0.42), up from RMB 1.57 ($0.21) in Q1 2024.
Revenue is projected at around RMB 169.69 billion ($23.2 billion), which falls below analyst estimates of RMB 240 billion but still represents a 35.8% increase from the previous year.
Ahead of its earnings release, BYD has been repurchasing its own shares. This move typically signals management confidence in the company’s fundamentals despite external pressures.
Analysts remain optimistic about BYD’s prospects. The stock holds a Strong Buy consensus based on 11 unanimous Buy ratings, with an average price target of $63.86 implying a 26.4% upside potential from current levels.
BYD’s founder and celebrated entrepreneur Wang Chuanfu was seen at the Denza Z display during Auto Shanghai. His presence underscores the importance of this launch to the company’s premium market strategy.
