The Price War is REAL: BYD’s Profit Plunges 33% (But They Just BEAT Tesla Globally)
In Q3 of 2025, BYD and Tesla their profit fell by 37 and 33% respectively. Profits in the industry worldwide are cratering, but still BYD and Tesla actually had a pretty good third quarter. Let’s have a look at the numbers and try to work out why Tesla stock is going up and BYD’s is going down. BD’s Q3 2025 results are in and investors aren’t too happy. BD stock price has fallen by nearly 5% overnight. But there’s not all bad news. There’s good news and there’s bad news. Here’s what happened for BYD globally in the third quarter of 2025. Hello my friends. Welcome to the channel. I’m Sam Evans. You’re watching the Electric Viking. Great to have you with us. BYD’s Q3 2025 results are a profound shift from last year. And honestly, it’s not just Tesla facing a challenging time. Body certainly is as well. Chinese EV titan BD’s latest financial report for the third quarter of 2025 presents a classic good news, bad news scenario. And here’s the thing. Buddy, they reported a significant decline in their third quarter 2025 financial results. This performance stands in stark contrast to the company’s robust growth last year. It’s raising investor concerns about the sustainability of margins in a cutthroat market. And BD stock price has actually fallen from its previous highs this year of around $20 by DDY down to around just under $13. That’s a pretty big fall. Is that justified though? Well, let’s have a look at the numbers. Year one year, net profit in the third quarter of this year was $1.1 billion US. That’s their sharpest profit drop in more than four years, marking the second consecutive quarterly decline. Could their profits potentially drop more? Absolutely they could. Everyone’s profits are razor thin right now. Remember CL? They have their new Naxra sodium batteries coming which I believe will take probably more than 50% market share within the next 5 years unless BD comes up with something similar. Revenue was down 3%. And that’s a rare decline signaling an intense margin pressure on every vehicle B is selling. Sales volume was also down by 1.82% to 1,114,000 units. that’s built his first year-over-year quarterly sales decline since maybe 2021. So, four more than four years. This is mostly driven by weakness in sales in China. So, Bid’s Q3 results, they paint a picture of a company sacrificing short-term profitability, which is a good thing, in a high stakes bet on long-term technological dominance. But probably more than that, global market share. That’s what they’re going for. Now, here’s the other side, which is, I guess you could say, the bad news. This severe decline in profit and volume is directly tied to the unforgiving environment in Buid’s home country, and that’s not going to change anytime soon. It could probably get worse. Profit pressure. The Q3 net profit of approximately $1.1 billion US was a substantial decline around 33% lower compared to the same quarter last year. This is a direct consequence of the ongoing price war in China which has eroded gross margins. Same thing has happened for the Volkswagen group, for Porsche, for Stellantis, for basically everyone. And margins fell by 6 percentage points year-over-year. B was forced to offer sweeping discounts to maintain market share. But at the same time, BD are kind of between a rock and a hard place because the Chinese government is saying, “No, you can’t discount anymore.” Uh, and BD is going, “Well, we we kind of have to because this is what everyone’s doing.” There’s been a sales growth slowdown in China. Crucially, BD’s overall sales volume in Q3 2025 saw a slight year-over-year decline. This is the first sales drop they’ve seen in many years, signaling the intense price war in the Chinese market is biting into their volume and domestic market share. Their market share in China dropped from 18% last year to 14%. Uh, that’s a significant decrease, guys. I use Powers Shop for my electricity to charge my EV for free between 12 and 2:00 during the day. I’ll put a link in the description. If you sign up with them, you get $170 discount to sign up. Also, my solar and batteries. I’ve got a 50 kWh battery here, and I’ve got a big solar array. So, I pay $0 for electricity. That’s including charging my electric car. Reync Solar is the company that I used. I’ll put a link to them in the description below. Now, I did a video, guys. In fact, I did two videos saying that last year I mentioned the risk with BYD and I mentioned some of the great things they had going for them. But one of the the the things I I spoke about was the risk with BYD was they were very Chinacentric at the time. In fact, at that time around 90% of their car sales worldwide were in China. And I said this is a big risk is having all your eggs in one basket. Now B knew that and they’ve tried to expand as quickly as possible. They have been doing that. As you can see though, most of their cars are still sold in China. So, this China risk is still a very strong component of BuD’s situation. Investors reactions. Well, the financial community wasn’t particularly pleased. The stock has taken a hit, falling around, well, nearly 5% and trading at around just under $13. This shows investors are currently prioritizing short-term domestic sales and profit over long-term R&D spending. BYOD spends more on R&D, I believe, than any other company, any other car company in the world, and they in fact have more than 1 million staff. That’s even more than Toyota has, and obviously Toyota is selling quite a few more cars than BYD. However, to counter domestic pressures, BOD is doubling down on a two-prong strategy, technological moat and global expansion. They’re building um a massive R&D machine. B spending on research and development in the first 9 months of the year was $6.14 billion US. They are the highest R&D spender in the Chinese automotive industry. And this investment remarkably exceeded their net profit for the same period by over 3.2 billion. So they’re spending a lot more on R&D than they are receiving in profits. The takeaway is sacrificing short-term profit to build a long-term technological moat in areas like intelligent driving systems, God’s eye, which they’ve integrated into their cars from Momena, and next generation battery architecture, blade battery technology. Now, sorry I should say not from Momento, from Huawei. Bid’s aggressive global expansion is continuing though. Their overseas explosion this year has been a huge part of what’s helped the company maintain its sales numbers despite its decline in China. The international market is proving to be their lifeline where margins are significantly higher than in China, much higher. Overseas deliveries jumped by a staggering 132% year-over-year in the first nine months, hitting their goal to double exports ahead of schedule. EV lead over Tesla. Does BD have one? Well, let’s have a look at the numbers. In the pure electric car segment, Body sold 1.61 million units in the first 9 months, officially out selling Tesla on EVs, which reported sales of 1.22 million units in the same period. However, some of you might counter and say, “Well, Tesla and Bo’s profits are are different, and you would have a point. We’ll get to that in a second.” Now, another thing that has helped Bo is new launches. Some people like myself believe that they are launching too many cars, and it’s confusing consumers. They have 60 different models. However, this expansion of models is supported by new localized product launches, including the Japan specific K car, the BID raco, and the new Cine 6 plug-in hybrid, showcasing a dual pure electric and hybrid strategy designed for new markets, which is mostly working. That said, BD is actually selling a lot more electric cars outside of China than it is hybrids. Body’s EVs are much more popular than its hybrids. In spite of the fact that tariffs on build EVs are much higher than they are on their plug-in hybrids in Europe, build EVs still out sell its plug-in hybrids. Corporate and operational stability is important, too. In a sign of corporate maturity and compliance, BD has moved to standardize payment terms for suppliers to within 60 days. This has been a a bone of contention for many people who believe has been really hurting their suppliers by taking up to a year to pay them and they’ve changed that. They’ve made sure that that’s not going to happen anymore which is important. The report confirms they are actively reducing payables which stabilizes their supply chain and is the sign of good governance as they scale globally. Um, there has been some definitely negative publicity about BOD over the past 12 months and some of that may be exaggerated, but some of it was definitely of BD’s own making. For example, the Brazil thing, right? So, yeah, there’s been some challenges for the company, but I think they’re coming out of that. In summary, while BD’s domestic performance is showing cracks from the price war, the company is leveraging its deep financial reserves to push forward with record R&D spending and successful international market penetration, setting the stage for a potentially massive global comeback once domestic market turbulence subsides. Now, let’s have a look at BOD’s Q3 profit versus Tesla’s. Net profit or GAP GAP for Tesla in Q3 of 2025 was $1.4 billion. BYD was $1.1 billion US, meaning Tesla made 300 million more than BYD. Looking at the year-on-year profit change, both companies profits declined significantly. BD’s went down by 32.6%. Tesla’s went down by 37%. So that’s sharp declines in profit for both companies. Total revenue was nearly identical. So Tesla total revenue 28 billion. BD total revenue 27.4 billion. Meaning yeah um Tesla’s actual profitability on its products is higher than BYD’s. Now of course you’ve got to take into account carbon credit sales and that may affect the numbers here. But actually Tesla’s carbon credit sales declined in the third quarter because of Trump’s uh changes to the US market. Total deliveries. Tesla delivered 497,000 vehicles, EVs only in the third quarter. BD delivered 1,114,000 vehicles, a combination of EVs and plug-in hybrids. And plug-in hybrid sales, once a very strong growth point for BD, have been declining significantly. In fact, their plug-in hybrid sales declined by approximately 26% over the past 3 months. So, the market is moving towards electric cars. Now, my concern would be Body are investing a lot of money onto into many different plug-in hybrid models, which I believe are technologically uh not as good, in fact, nowhere near as good as some of their rivals. And that would be a concern for me. How much money are they investing in all all these new models in these new cars? Which to be fair on a paper basis, if you’re just looking at them in a spreadsheet, what are the actual EV ranges? What’s the charging speed? What’s the efficiency? What’s the weight? Then well, their rivals are superior. There’s no question about that. But B’s amount of choice, they have so many models, so many choices in so many marketplaces. And also their massive investment on marketing, which has far outweighs the investment spend of any other Chinese car company by an order of magnitude, is helping them beat their rivals, particularly internationally. So key takeaways here, Tesla is still more profitable. This shows that despite the massive price cuts, Tesla’s overall operational efficiency and higher average selling prices still give it a profit advantage, which is surprising considering the fact generally plug-in hybrids, legacy automakers have no trouble making profits on plug-in hybrids. Who makes a profit on plug-in hybrids? Pretty much every car company in the world does. Yeah. Who makes a profit selling electric cars? No one. BYD, small profit. Tesla small profit slightly bigger than BD but still small and there’s not many others I think I think Leap Motor made a small profit in the past quarter but that’s about it so yeah it’s pretty shocking that Tesla is able to make the kind of profit margins it does on its electric cars though sold double the volume now I mean they sold more than double 1.11 million vehicles versus Tesla’s just under 500,000 but yeah less profit per car. Now, when you do the rough math, Tesla is making a significantly higher profit per vehicle compared to BYD. It’s not really close, but there’s some shared pain here. I mean, profits for both companies fell by similar amounts. 32.6% for BD, 37% for Tesla. This is a bloodbath. It’s tough. It’s challenging. And we’re going to see more storylines like this. It’s not going to be smooth sailing for anyone. If you’re investing in any EV company, um the point of this channel is to keep you informed on everything going on. That’s the reason why I do five or six videos per day. Thanks for watching. [Music]
The Price War is REAL: BYD’s Profit Plunges 33% (But They Just BEAT Tesla Globally)
BYD’s profits fell 33% as the global EV price war intensified, but the automaker still managed to outsell Tesla worldwide thanks to aggressive pricing, expanding exports, and a faster rollout of affordable models. Despite shrinking margins, BYD’s volume dominance signals a shifting balance of power in the global EV market.
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