Satellite photos show how BYD’s massive European factory is taking shape as it brings the fight to Tesla

BYD is building a massive factory in Hungary as it looks to overtake Elon Musk’s Tesla in Europe.

The 300-hectare site on the outskirts of Szeged, Hungary, is expected to have a maximum capacity of around 200,000 vehicles a year, and satellite images provided to BI by Planet Images show how the factory is rapidly taking shape.

Construction of the site began last year, with a Hungarian official confirming last November that the first BYD EV is expected to roll off the line in the second half of 2025.

The estimated €4 billion ($4.5 billion) investment is the latest step in BYD’s quest for European domination.

Having conquered China’s brutally competitive electric vehicle market, the Chinese EV giant is eyeing overseas expansion, exporting a record number of electric vehicles and hybrids in the first quarter of 2025.

BYD is barred from the US market thanks to high tariffs and faces a 17% import tax in Europe, leading the company to invest in local factories such as the one in Hungary.

The Chinese automaker is also set to break ground on a factory in Turkey in the coming years, and executives at the Warren Buffett-backed automaker have said that plans for a third European factory are under consideration.

That poses a huge threat to Tesla, which has a gigafactory in Germany and counts Europe as its third-biggest market.

Elon Musk’s carmaker sold 327,000 vehicles in Europe last year but has seen sales collapse in 2025 amid intense backlash over Musk’s interventions in European politics and support for the German far-right AfD party.

Tesla’s sales in Europe have fallen 37% in the first three months of the year, while BYD’s have surged by nearly 300%.

Hungary has proven to be a welcoming environment for Chinese companies looking to put down roots in Europe.

Battery giant CATL, which is the world’s largest manufacturer of EV batteries, is also building a $7.6 billion factory in the country as it seeks to tighten its grip on the continent’s battery industry.

The presence of Chinese companies has sparked tensions with the European Union, which counts Hungary as a member.

Last month, The Financial Times reported that the EU was investigating whether BYD’s Hungarian plant had received unfair subsidies from the Chinese government.

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