Prediction: 1 Electric Vehicle Stock Poised to Overtake Tesla by 2030

The automobile industry is changing as the world transitions towards electric vehicles. Governments are spending billions on electric vehicles and taking all the necessary steps to increase their adoption. It will take time for EVs to become bestsellers, but that could become a reality by 2030. 

Given the current situation, investors might be wondering which company will claim the EV throne in the next five years. Many think of Tesla Inc. (NASDAQ: TSLA) whenever EVs are mentioned but there is one EV stock that is set to overtake Tesla by 2030. I believe BYD (OTCMKTS:BYDDF) is the biggest industry player with the potential to beat Tesla. 

BYD has already dethroned Tesla 

Chinese multinational company BYD is known for a wide range of products including electric vehicles and batteries. In 2024, the company led the way and dethroned Tesla. In China, BYD holds a stronger position than Tesla and it is on a global expansion spree. 

Exchanging hands for $52, near the 52-week high of $54. The stock is up 56% year-to-date and 88% in 12 months. In the recently announced results, BYD’s quarterly profit jumped at the fastest pace in two years. The net profit came in at $1.26 billion, up 100% and in line with the company’s expectations. 

The revenue stood at 170.4 billion yuan, up 36.4% and it maintained its leading position in the home market where it accounted for 13.6% of sales in the first quarter. Other than the home market, BYD is trying to achieve exports of 800,000 vehicles in 2025. The exports make up about 90% of the total sales for the company. 

Ideal long-term EV play 

BYD has a P/E ratio of 19 and impressive profit growth. While Tesla saw a 71% drop in profits, BYD reported profits of 73% year over year. That said, Tesla has also seen a continuous drop in deliveries. It saw a 13% decline in deliveries during the first quarter to 336,681 units while BYD reported NEV sales of 1,000,804 units, a 59% year over year jump.

I believe the negative trend will continue this year driven by the tariffs and new Chinese rivals. BYD’s 2024 profits jumped 34% year over year while the revenue soared 29%. Tesla generated $98 billion in 2024 and BYD reported a revenue of $107 billion. It also reported a significant rise in deliveries across China. BYD is now the largest automaker in China and is growing the export segment to ensure that its vehicles reach as many countries as possible. 

There is a lot of hype surrounding Tesla’s robots and self-driving division but these are future catalysts and one can never know when it will turn into a reality. Investors have been betting on the future possibilities of the business but even a minor slip-up could lead to a stock decline. 

Massive upside potential 

BYD, on the other hand, benefits from the charging segment. It has recently built a new charging system known as the Super e-Platform which can charge a vehicle with 250 driving power miles within five minutes. It also offers a wide range of cars at a lower rate. The company’s new EV with a range of 340 miles has a starting price of $16K which is much cheaper than any Tesla EV. It has also released a new luxury sports car and its sixth car carrier. 

BYD is taking giant strides in the industry and other than the tariff concerns, there is no stopping its momentum. I think the long-term picture looks attractive and BYD will continue to dominate in the highly competitive EV industry. 

Tesla looks expensive despite the sluggish deliveries and disappointing numbers. However, BYD is a solid industry player with an expanding global market and growing profits. I believe BYD is poised to overtake Tesla by 2030 and will become one of the most coveted EV stocks. 

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