BYD Has Already Lapped Tesla — Now It Says Toyota Is Next And US Market Doesn't Matter

• BYD has overtaken Tesla in global EV sales and now aims to surpass Toyota within five years.
• Executive Stella Li said BYD can reach the top without entering the U.S. passenger-car market.
• The automaker is prioritizing overseas growth as China’s price war pressures domestic margins.

BYD has overtaken Tesla in global EV sales. Its next target is far bigger: Toyota’s crown as the world’s largest carmaker.

BYD’s U.S.-listed stock jumped 3% on Tuesday, ending the session at $10.98. 

BYD Dismisses Need For US Market 

Stella Li, who leads BYD’s international operations, said the Chinese automaker can surpass Toyota within five years through organic growth, without entering the U.S. passenger-car market or acquiring a rival. “We don’t need the US market to achieve that,” Li told the Financial Times.

BYD sold about 4.5 million vehicles last year, compared with Toyota’s 10.5 million. Toyota’s scale is supported by strong U.S. sales and a broad lineup spanning gasoline, hybrid and electric vehicles. BYD remains largely excluded from the U.S. passenger-car market because of tariffs and restrictions on Chinese automotive software. Still, Li said the company does not need America to reach founder Wang Chuanfu’s ambitious target. 

On Stocktwits, retail sentiment for BYD improved to ‘bullish’ from ‘bearish’ levels a day ago amid ‘extremely high’ message volume.

The claim comes after BYD’s renewed lead over Tesla in battery-electric vehicles. The Chinese automaker delivered 557,090 EVs in the second quarter, placing it ahead of its U.S. rival. However, Tesla shares have climbed 25% over the past year, outpacing Toyota’s 4% gain, while BYD’s U.S.-listed shares have fallen 29%.

BYD Overtakes Tesla And Ford In Europe

With China’s auto market caught in a brutal price war, BYD is leaning heavily on overseas growth. Its European market share more than doubled to 2.8% in May, allowing it to move ahead of Ford, Tesla and Nissan. Europe is especially attractive as BYD can earn higher margins there than in its home market.

The company is also expanding across Southeast Asia and Latin America as Chinese automakers increasingly look abroad for growth. China’s monthly vehicle exports reached a record 1 million units in June.

BYD Targets Europe’s Luxury Car Market

Renault reportedly rejected an approach from BYD last year, when buying into an established manufacturer was viewed as a shortcut to European factories and supply chains. Li said she remained “open-minded” about acquiring a premium European brand, but added that BYD had no specific target and had not been approached. BYD is instead investing in its own premium brand, Denza, which it hopes can challenge established German manufacturers.

The company recently unveiled the Denza Z electric supercar, priced from £142,900 in the U.K., and plans to spend nearly €2 billion installing 3,000 “flash” chargers across Europe by 2027. BYD says the technology could charge compatible Denza models to 70% in five minutes. “Just wait one more year and you’ll say we can do this successfully,” Li said.

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