In a surprising turn of events, Chinese electric vehicle (EV) giant BYD has outshone Tesla in quarterly revenue for the first time. BYD's net profit soared by 11. 5% to $1. 63 billion in the third quarter, with total revenue hitting $28. 24 billion, a 24% jump from the same period last year. This impressive growth was fueled by government incentives that encouraged trade-ins of old cars for new, greener vehicles.

Despite this milestone, Tesla still led in global EV sales during the same period. BYD, however, dominated the Chinese market, contributing to over one-third of the total EV and plug-in hybrid sales in the country. September saw the company breaking monthly sales records, and the third quarter marked its best performance to date.

The Chinese government has been supportive of the EV industry, offering subsidies of up to $2, 800 per car for trade-ins and additional local subsidies of up to $3, 100. These incentives have been a significant factor in boosting sales. BYD's aggressive discounts on its popular models, particularly its latest generation of plug-in hybrids, have also played a crucial role in driving sales growth.

However, BYD's growth in pure EV sales has slowed, increasing by only 2. 7% to 443, 426 units. This slowdown has allowed other EV rivals in China to gain market share. Nevertheless, BYD remains a dominant force, with over 90% of its sales occurring within China.

Looking ahead, BYD aims to double its exports to 450, 000 vehicles this year, although this is a revision from the earlier target of 500, 000. Despite facing tariffs, BYD is expanding into European markets, selling 94, 477 cars overseas in the third quarter, a significant 32. 6% increase from the previous year.

BYD's EV Sales Surge: Beating Tesla in Revenue

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