China just hit a massive milestone in its EV revolution, with its 10 millionth electric vehicle rolling off production lines – beating 2023’s output seven weeks early according to a report from OilPrice.com.

Record-Breaking Growth Despite Economic Challenges

Chinese EV makers are crushing it this year. They’ve delivered 9.75 million units to mainland buyers between January and October – that’s a huge 34% jump from last year. Even better, EVs now make up more than half of all car sales in China since July, marking a historic shift in the auto industry. The government’s helping too, offering up to $2,800 in subsidies for trading in older cars for EVs.

BYD is still China’s EV king, hitting a record 500,000+ sales in October. Their Q3 numbers are impressive too – $28.2 billion in revenue (up 24%) and $1.63 billion in profits (up 11.5%). For comparison, Tesla pulled in $25.2B in revenue with $2.17 billion in profits.

The Tariff Storm Hits

Here’s where things get complicated. The U.S. isn’t playing nice – they’ve slapped Chinese EVs with a massive 100% tariff, plus 25% on EV batteries. Europe‘s not far behind, with the EU likely to approve tariffs between 8% and 35% on Chinese EVs.

The price gap shows why Western markets are worried. Take BYD’s Seagull – it sells for around $12,000 in China and would cost about $25,000 in the U.S. if allowed. Compare that to Tesla’s Model 3 starting at $40,630.

Expert Opinions on Impact

KraneShares’ Anthony Sassine isn’t too worried about these tariffs:

“The Chinese manufacturers are so efficient, are so ahead of the curve, that tariffs like this – I don’t think will impact too much the pricing here. They will still be more competitive than their EU counterparts.”

EVXL’s Take

Looking at the bigger picture, this battle over EV market share shows just how far BYD and other Chinese manufacturers have come. While Western markets try to protect their domestic industries, Gartner’s prediction that EVs will be cheaper to produce than traditional vehicles in just three years suggests the electric revolution is unstoppable. The real question isn’t if EVs will dominate, but who will lead the charge.

What’s your take on these tariffs – will they slow down China’s EV momentum? Share your thoughts in the comments below.