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A Full Analysis of BYD ($BYDDY)
Could they beat Tesla over the long-term...?
Together with X Funds
Welcome back to GRIT Alpha! This week, we’re breaking down BYD Auto. Founded in 2003 as the automotive subsidiary of BYD Company, it’s a Chinese electric vehicle giant that produces passenger BEVs & PHEVs, electric buses, and trucks. It’s well known for its Blade Battery and integrated manufacturing model.
As of 2024‑2025, BYD has outpaced Tesla in global EV sales (when including hybrids) and is rapidly expanding production and market reach worldwide.
Oh — and it’s up +409% over the last five years.
Let’s dive in.
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Stock Pick: BYD Co. LTD (BYDDY-US, 1211-HK; $140B MCAP)
Trivia time… Who is the #1 seller of EVs worldwide?
Tesla? Nope. In the first half of 2024, BYD emerged as the leading seller of electric vehicles (EVs) globally, surpassing Tesla.
While the greatest inventor of our generation takes his eye off the ball, another company is smashing grand slams.
If you haven’t seen YouTube videos like this one that showcase the bestselling BYD vehicle, I highly suggest you check it out. It’s like a video of what a Tesla should be. While Tesla offers full-self-driving features for hefty markups, BYD brought certain autopilot features to 21 EVs for free.
In the global race to build out a fleet of EVs, Tesla isn’t necessarily the king. BYD has taken the crown. Read on for more!
Why now? 👉 EVs Reaching Critical Mass
Overview 👉 What Does BYD Do?
BYD vs. Tesla 👉 Who is winning?
How do they win? 👉 Value Proposition
How Do They Make Money? 👉 Vehicle Sales, Batteries, & Energy Storage
By The Numbers 👉 Key Metrics
Risks 👉 Potential Pitfalls
Why now? 👉 EVs Reaching Critical Mass
Electric vehicles have gone mainstream. They accounted for 22% of global auto sales in 2024, up from 5% just a few years earlier, and nearly half of all new cars in China. Few firms capture that shift better than Shenzhen‑based BYD (“Build Your Dreams”).
BYD’s Hong Kong stock jumped over 50 % in early 2025, pushing its market cap to about USD$140B —above many legacy automakers. The fundamentals back it up: 2024 revenue leapt 29% to ¥777B (~$107B), topping Tesla, while deliveries hit records and margins widen thanks to in‑house batteries (more on this later).
Scale is decisive as governments tighten emissions rules and subsidize EVs. BYD abandoned gasoline‑only models in 2022, so every production hour now feeds the fastest‑growing segments. Management targets 5.5 million vehicles in 2025, including 800k overseas, and has raised $5.6B to fund R&D, new plants, and a global dealer network.
The strategy depends on two reinforcing flywheels: vast domestic volume driving down battery and drivetrain costs, and a war chest to replicate the playbook abroad. Strong cash generation fuels deeper vertical integration, from lithium resources to semiconductor chips, insulating profits from price wars. Execution missteps or protectionist barriers remain risks, but for now, surging demand, manufacturing heft, and ample capital keep the wind squarely at BYD’s back.
Overview 👉 What Does BYD Do?
BYD Company Limited is often called the “Tesla of China”, yet its reach extends far beyond building electric cars. Founded in 1995 as a battery maker, the firm has evolved into a broad clean‑tech group covering automobiles, batteries, storage, solar and consumer electronics. It is now the world’s largest producer of new energy vehicles, a category that includes pure electric and plug in hybrid models. In 2024 BYD moved about 4.3 million electric or hybrid passenger cars, buses, trucks, taxis and commercial vans, giving it the top spot globally by volume. The catalog ranges from budget hatchbacks like the Dolphin to family sedans and sport utility vehicles such as the Han, Tang and Atto 3, then up to luxury Denza and Yangwang lines. The company also sells electric forklifts and SkyRail monorail systems, proving an all in approach to electrified transport.
Batteries remain BYD’s core skill. Its in‑house Blade Battery uses lithium iron phosphate cells that provide strong safety and energy density at low cost. This secure supply shields BYD from industry wide cell shortages and lets it sell packs to peers; Toyota’s bZ3 sedan, for example, relies on BYD batteries and motors. Through BYD Electronics the group manufactures casings, circuit boards and assemblies for smartphones, tablets and laptops, recently deepening its role in the iPhone supply chain through a factory purchase. In short, BYD unites vehicle production, battery technology, solar and storage solutions and contract electronics under one roof, offering end to end clean energy hardware that supports a zero emission future.
