Chinese electric vehicle (EV) manufacturer BYD is poised to dethrone industry titan Tesla Inc. as the world’s largest EV maker, as it inches closer to surpassing the global sales figures of Tesla. Tesla’s recent factory downtime has led to its first global delivery decline in over a year, opening the door for BYD to stake its claim as the new leader in the electric vehicle market.
In the third quarter of 2023, BYD, headquartered in Shenzhen, China, reported the sale of a staggering 431,603 fully-electric vehicles, bringing it tantalizingly close to Tesla’s total of 435,059 electric cars sold during the same period. However, this remarkable achievement has not come without its share of market volatility, as BYD’s stock price experienced a 3.6% dip in Hong Kong following Tuesday’s morning trade. Market analysts suggest that this downturn might be partially attributed to the broader Hang Seng Index, which settled at its lowest intraday level since November 2022.
BYD’s success extends beyond electric vehicles alone. The company’s inclusive approach includes hybrid models, with a record-breaking 822,094 total vehicles sold in the third quarter. This achievement underscores BYD’s expanding appeal to a diverse range of consumers. The carmaker’s strategy involves offering both higher-end luxury EV brands, targeting the 1 million-yuan ($137,000) price category, and more affordable models to gain an edge over its competitors.
While domestic growth has undoubtedly played a significant role in BYD’s ascent, the company’s global reach is expanding rapidly. Exports now account for 9% of BYD’s total sales in the third quarter, up from 5% in previous quarters. This international growth further solidifies BYD’s position as a formidable competitor to Tesla.
Tesla, on the other hand, remains undeterred by its recent delivery decline. CEO Elon Musk has reaffirmed the company’s commitment to achieving its annual target of selling 1.8 million vehicles. In contrast, BYD has set even more ambitious goals, aiming to surpass this figure by being on track to sell approximately 3 million vehicles, including hybrids, this year.
In a twist of fate, both BYD and Tesla are currently ensnared in the same European investigation into subsidies for electric vehicles. Tesla recently reintroduced its base Model Y crossover sport utility vehicle with rear-wheel drive at a more competitive price point while also making subtle improvements to the Model Y in China, all while maintaining its existing price structure.
The rivalry between BYD and Tesla is clearly intensifying as they vie to expand their global footprint and secure a larger share of the EV market. The ultimate question remains: Which electric vehicle juggernaut will cross the finish line first in this electrifying race? Only time will tell as the world watches in anticipation of the outcome.
As the global automotive landscape undergoes a transformative shift toward electric vehicles, BYD’s ascent stands as a testament to the rapid evolution of the industry. With both companies poised to make history, the electric vehicle market is undoubtedly one of the most exciting arenas for innovation and competition in the modern era.
Source: Bloomberg
