For the first time ever, Chinese electric vehicle (EV) giant BYD has outshone its American rival, Tesla, in quarterly sales. According to a recent report, BYD's revenue for the three months ending Sept. 30 hit 201. 12 billion yuan ($28. 24 billion), a 24% increase from the previous year. This is a significant milestone for the Beijing-based company, especially in the face of a slowdown in the EV market in mainland China. August saw BYD selling a record number of passenger vehicles. However, when it comes to net profit, Tesla is still in the lead. The American carmaker posted a net profit of $2. 18 billion for the same period, a 16. 2% increase year-over-year. BYD's profit, while still impressive, saw an 11. 5% boost to 11. 6 billion yuan.

Despite this victory, BYD is facing stiff competition from Tesla in the world's largest automotive market, China. Tesla's Model Y remains the top-selling battery electric vehicle, with BYD's Seagull coming in a close second. The rivalry is set to intensify with the European Union's recent decision to impose higher tariffs on Chinese EVs. These tariffs, which can reach as high as 45. 3%, are intended to protect EU automakers but will make it more expensive for Chinese EVs to enter the European market.

Both BYD and Tesla are taking steps to counter these new tariffs. Tesla plans to double its production capacity at its Berlin plant, while BYD is setting up new operations in Hungary and Turkey, which has a customs union with the EU. These moves aim to mitigate the impact of the increased duties and solidify their position in the global EV market.

BYD Beats Tesla in Quarterly Revenue but Trails in Profits

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