China beats the US at the car chapter: The BYD profit has doubled, while Al Tesla has dropped dramatically
The landscape of electric vehicles changes, and the Chinese company byD is required as the main competitor of Tesla, Elon Musk's company. At the same time, the future announces an even more fierce competition on the world market for clean energy vehicles, but the customs tariffs imposed by Donald Trump increase the uncertainty.
Byd is required as the main competitor of Tesla. Photo archive
Byd revenues reached 170.4 billion Yuan ($ 23.35 billion) in the first quarter, up 36.4% compared to the same period last year, compared to an increase of 52.7% in the previous quarter. The latest financial reports of the company show a remarkable performance, the BYD profit in the first quarter increasing by over 100% compared to the previous year, the fastest rate of the last two years. At the same time, Tesla reported a decrease in profits by 71% for the same period.
The China car sector continues to expand, the first quarter of 2025 showing a two -digit increase in both production and sales. Vehicles with new energy (which include electric vehicles with batteries, plug-in hybrids and combustion pile vehicles, but not pure hybrid vehicles) now represent over 50% of the total sales of new cars in China, significantly exceeding the adoption rates in the United States and Europe. For example, in Europe, in the first quarter, 15.2% of the vehicles sold were electric vehicles, 7.6% plug-in hybrids (PHEV) and 35.5% pure hybrids.
The data on the sales of new energy vehicles in the first quarter of 2025, shows that the Chinese market was dominated by the byd by almost 29%, followed by Geely, the owner of Volvo (13%), Saic-GM-Wulaing (6.5%), Changan (6.5%) and Tesla (5.6%). “However, the Tesla Y model was the best -selling SUV in China in the first quarter ”points out the analyst Etoro Bogdan Maioreanu.
The Shanghai Motor Show from 2025, which will close its doors on May 2, highlights the acceleration of innovation in the China industry, with over 70 car brands that have over 100 new or updated models. Byd and Geely have taken the central place, while about a dozen new crossover models that compete directly with the Tesla's Y model, offering higher battery charging capabilities and advanced features at competitive prices. Among the notable news were the Galaxy Cruiser from Geely (a 4 × 4 electric), the Pro Phev Frontier truck and the 9x large SUV from Zeekr. However, there were also remarkable absences, such as Hyundai, Kia and Genesis from Korea, which missed the salon for the first time, the French brands Citroën and Peugeot, as well as the British brands Jaguar and Land Rover, who decided not to participate in this year's edition. However, there were also new ones in the sector of electric vehicles, such as Xiaomi Automotive, Leapmotor (supported by Stelantis) and Hima brands of Huawei.
Chinese car companies have decimated over the past 15 years
While the bright cars capture the imagination of the enthusiasts, a ruthless pricing war takes place behind the scenes. The sector of new energy vehicles in China is preparing for a “Elimination competition” Brutal that will take place in the next three years, of which, according to sources inside the industry, it is likely that more than three quarters of companies will not survive. At the end of 2010, there were over 400 car manufacturers in China, and at present, this number has decreased to about 40 and continues to be reduced. According to HE Xiaopeng, the founder and CEO of the Xpeng Motors electric car manufacturer, the wave of bankruptcy will probably continue for several years, leading to the final survival of “less than seven” brands. And this pricing war extends outside China, putting pressure on both European and American producers.
In a landscape where most world brands present cars that highlight a multitude of technological progress, full of bright LED screens, autonomous pilots and gadgets, a new US company chooses a different way. Slate Auto recently presented an “analog” electric truck, positioned as a distinct anti-tesla product. The start-up EV is supported by Jeff Bezos from Amazon. The Slate approach is minimalist, offering a customizable truck at the price of $ 25,000, without paint options, but with a large list of options for breeding, with manual windows, without adaptive autopilot and without central infotainment screen. But it gives the owners the possibility to customize their vehicles before and, more importantly, even after delivery, adding speakers, screens, but also the possibility of turning from the truck to SUV, if desired. “I saw a similar approach at the beginning with Dacia Logan, a car with the main function of taking you from point A to point B ”says Etoro analyst, specifying that Slate production is scheduled to start in 2026, and the first deliveries are provided for the fourth quarter of 2026. The company is expected to a total production capacity of 150,000 vehicles per year to 2027-2028.
Tesla shares decreased by 30% this year
As the Byd continues its domination on the market and innovative competitors like Slate appear, Tesla is experiencing increasing pressure to revive their product range and strategy in a global landscape of electric vehicles more and more competitive. The price of the shares of Elon Musk's company decreased by almost 30% this year, while its Byd rival registered an increase in shares of over 50% in the same period. Investors in Tesla shares are not ready to give up, this being the most owned company by Romanian individual investors and the second most owned by global investors on the trading and investment platform. “C.u all this, the road is difficult for byd and tesla, and Trump -imposed rates complicates even more an already extremely complex context“Added the analyst.
