Tesla vs BYD: Which EV Giant Is Actually More Ethical?
Tesla and BYD are the two largest electric vehicle manufacturers on the planet. Both sell a vision of a cleaner future. Both have built their brands on the promise that electrification is good for the world.
But building electric cars does not automatically make a company ethical. Behind the green marketing, there are supply chains to scrutinize, labour practices to examine, corporate governance records to review, and data handling policies to assess.
We scored both companies across 11 independent ethical dimensions using court filings, regulatory actions, investigative journalism, and NGO reports. No self-reported sustainability data. No ESG questionnaires. Just independently sourced, cited evidence processed through our scoring methodology.
Here is what the data shows.
The Full Scorecard
| Dimension | Tesla (TSLA) | BYD (1211.HK) | Advantage |
|---|---|---|---|
| Better Health for All | -20 | 0 | BYD |
| Fair Money & Economic Opportunity | 0 | 0 | Tied |
| Fair Pay & Worker Respect | -50 | -30 | BYD |
| Fair Trade & Ethical Sourcing | -10 | -50 | Tesla |
| Honest & Fair Business | -50 | 0 | BYD |
| Kind to Animals | -20 | -10 | BYD |
| No War, No Weapons | -20 | -10 | BYD |
| Planet-Friendly Business | -10 | -20 | Tesla |
| Respect for Cultures & Communities | +25 | 0 | Tesla |
| Safe & Smart Tech | 0 | -70 | Tesla |
| Zero Waste & Sustainable Products | +40 | +10 | Tesla |
| Average Score | -10.5 | -16.4 | Tesla |
Tesla leads in 4 dimensions. BYD leads in 4. They tie on 1. Both are in negative territory overall, but Tesla's average of -10.5 comes out ahead of BYD's -16.4.
Neither company scores particularly well. But the reasons they score poorly are very different.
Where They Diverge Most
1. Safe & Smart Tech: Tesla 0, BYD -70
This is the single largest gap between the two companies across any dimension.
BYD scored -70 on our Safe & Smart Tech assessment. According to our data, while BYD has obtained R155 and R156 cybersecurity system certifications and employs encryption technology, serious concerns have emerged. Public reports indicate BYD vehicles have been flagged for cybersecurity vulnerabilities, and questions have been raised about data handling practices and the potential for vehicle data to be accessed by state actors.
Tesla scored 0, which reflects insufficient independently verifiable evidence to form a clear assessment in either direction. Tesla's focus on data protection, cybersecurity, and AI ethics governance is noted, but the publicly available independent evidence was not sufficient to score positively or negatively.
For investors who prioritize data privacy and technology safety, this gap is significant. A -70 is among the lowest scores in our entire database for any company on any dimension.
Explore what Safe & Smart Tech measures ->
2. Fair Pay & Worker Respect: Tesla -50, BYD -30
Both companies score negatively on labour practices, but Tesla's score is substantially worse.
Tesla's -50 reflects a documented pattern in public records. According to our analysis, Tesla has faced 77 labour-related incidents since 2008, with 80% being OSHA citations. Public reports indicate serious workplace safety incidents and ongoing disputes around unionization and worker organizing rights.
BYD's -30 stems from a different set of concerns. A 2024 incident in Brazil revealed conditions described in public reports as forced labour among Chinese workers at a BYD factory construction site, with allegations of withheld wages and inhumane living conditions. BYD has also faced scrutiny over working hours and conditions at its Chinese manufacturing facilities.
Different problems, but both companies fall well below zero. Neither is a model employer based on the independent evidence available.
View Tesla's full score breakdown ->
3. Fair Trade & Ethical Sourcing: Tesla -10, BYD -50
On supply chain ethics, the positions reverse. Tesla scores -10 while BYD scores -50.
Tesla's score reflects a mixed record. On one hand, a U.S. court dismissed a child labour case against Tesla, finding no direct participation in forced labour. CEO Elon Musk publicly pledged to review cobalt supply chains. On the other hand, concerns persist about the broader mineral sourcing practices in the EV battery supply chain.
BYD's -50 is driven by more severe findings. The Brazilian investigation that found 163 Chinese workers in what investigators described as "slavery-like conditions" directly impacts this dimension. Public records indicate contract violations and poor living conditions associated with BYD's subcontracting practices.
For investors focused on ethical sourcing, this is a material difference.
View BYD's full score breakdown ->
4. Honest & Fair Business: Tesla -50, BYD 0
Tesla's -50 on corporate governance is one of its weakest scores. According to our data, Tesla has incurred over $99 million in regulatory penalties since 2000, related to financial offences, government contracting, and competition issues. The company's regulatory record spans multiple jurisdictions and categories.
BYD scores 0, which in this case reflects insufficient independent evidence to score in either direction. This is not necessarily a positive signal — it may indicate limited regulatory transparency or limited investigative coverage in English-language sources.
A score of 0 versus -50 is notable, but investors should understand that 0 means "no clear independent signal," not "clean record."
5. Zero Waste & Sustainable Products: Tesla +40, BYD +10
This is one of the few dimensions where both companies score positively — and where Tesla shows genuine strength.
Tesla's +40 reflects concrete metrics. According to our analysis, Tesla recycled 90% of its manufacturing waste in 2023, and its Shanghai Gigafactory achieved a 94% waste recycling rate. The facility received recognition for zero-waste manufacturing practices.
BYD also scores positively at +10. BYD Electronic achieved over a 90% waste conversion rate from October 2023 to September 2024, achieving what it describes as zero landfill of waste at certain facilities.
Both companies demonstrate measurable commitment to waste reduction in manufacturing. Tesla's higher score reflects more comprehensive and independently verifiable evidence across its operations.
Explore Zero Waste & Sustainable Products ->
What About the Environment?
Both companies sell electric vehicles as a solution to climate change. So how do they score on Planet-Friendly Business?
Tesla: -10. Despite the electric vehicle mission, Tesla's environmental score is slightly negative. On the positive side, Tesla customers avoided releasing nearly 32 million metric tons of CO2e in 2024 through vehicle use. But the company's own manufacturing operations, energy consumption, and broader environmental practices introduce offsetting concerns in our analysis.
BYD: -20. BYD's subsidiary consumed 57.9% green electricity in 2024, and the company recycled over 162,000 tons of waste. But BYD also faces scrutiny over the environmental impact of its rapid manufacturing expansion and battery production processes.
Neither company scores above zero on environmental performance in our methodology. This matters because it highlights a gap between the product narrative (clean transport) and the full operational picture.
Learn more about Planet-Friendly Business ->
Where They Agree
Some dimensions show little difference between the two companies:
- Fair Money & Economic Opportunity: Both score 0. Neither company operates primarily in financial services, so most indicators in this dimension are not applicable.
- Kind to Animals: Tesla at -20 (leather alternatives adopted, but some concerns remain) versus BYD at -10. Both are in mildly negative territory.
- No War, No Weapons: Tesla at -20 (a potential $400 million armoured vehicle contract raised questions) versus BYD at -10 (a reported contract involving Iran). Neither is a defence contractor, but both have peripheral connections.
The Verdict
Tesla's average score of -10.5 is higher than BYD's -16.4. Tesla leads in 4 dimensions, including its strongest showing on waste reduction (+40) and a notable positive on community relations (+25). BYD leads in 4 dimensions but is dragged down severely by its -70 on technology safety and -50 on ethical sourcing.
But this is not a story of one company being ethical and the other not. Both are in negative territory. Both have serious, documented concerns in multiple dimensions. They simply fail in different ways.
Tesla's biggest risks: Corporate governance (-50), worker rights (-50), and a pattern of regulatory penalties.
BYD's biggest risks: Technology safety (-70), supply chain labour practices (-50), and environmental performance (-20).
An investor choosing between them on ethical grounds is not choosing between good and bad. They are choosing which risks they find more acceptable.
The data is here. The decision is yours.
How We Score Companies
Mashinii scores companies across 11 ethical dimensions using independently sourced data — court filings, regulatory actions, investigative journalism, and NGO reports. Scores range from -100 to +100. A score of 0 means insufficient independent evidence to assess. Every score is backed by cited sources.
We do not use corporate self-assessments or ESG questionnaires. Learn more about our methodology ->
What Should You Do?
Check your own portfolio. If you hold EV stocks — or any stocks — you can see how every company in your portfolio scores across all 11 dimensions.
Search any company. Look up Tesla, BYD, or any of the 5,000+ companies in our database.
Explore the full Tesla breakdown: View Tesla's Score ->
Explore the full BYD breakdown: View BYD's Score ->