BYD Company Limited's quarterly revenue exceeded Tesla's for the first time, marking another milestone in their global electric vehicle sales showdown since the positive face-off between the two companies.

For the three months ending September 30, BYD's revenue skyrocketed by 24% year-on-year to 201.1 billion yuan (28.2 billion US dollars), falling short of expectations but surpassing Tesla's revenue of 25.2 billion US dollars for the same period.

In the third quarter, BYD sold an unprecedented 1.12 million electric and plug-in hybrid cars, with a net income growth of 11.5%, reaching a historical high of 11.6 billion yuan, exceeding consensus expectations. The gross margin is 21.9%. However, BYD's net income still lags behind Tesla's reported 2.2 billion US dollars.

In the first nine months of this year, BYD reported a net income of 25.2 billion yuan and a revenue of 502.3 billion yuan.

BYD and Tesla pose a groundbreaking threat to traditional auto manufacturers, especially Volkswagen, Ford, Stellantis NV, and General Motors, as they face profit challenges in the transition to electric vehicles. With weakening consumer demand for electric cars, BYD relies on its strong hybrid car lineup, making it less susceptible to impacts compared to Tesla.

Hybrid cars have significantly boosted BYD's revenue, with some models having upgraded power systems achieving a range of over 2000 kilometers. Another key advantage of BYD is its vertically integrated supply chain, producing more components internally to gain cost and scale advantages, resulting in cheaper car prices.

At the same time, Tesla is addressing the increasingly limited and outdated series of pure electric cars, focusing more on increasing the production of the Cybertruck, and expanding the use of a semi-automated system called Full Self-Driving (FSD).

Nevertheless, Tesla's artificial intelligence potential and its long-term leading advantage in electric car sales have helped consolidate its position as the world's most valuable auto manufacturer. BYD ranks third, behind Toyota Motor, but ahead of Volkswagen, Mercedes-Benz, and the Detroit Big Three (General Motors, Ford, and Stellantis).

BYD's stock listed in Hong Kong fell by 0.7% on Wednesday, narrowing its year-to-date gain to 37.6%. Tesla's stock price has risen by 4.4% since January.