BYD on Brink of Toppling Tesla to Become World’s Biggest EV Firm
Tesla’s rise to success has been nothing short of a fairytale. Just a few years ago, the company was on the verge of bankruptcy as it struggled to ramp up production of its Model 3. Fast forward to today, and Tesla is now the world’s largest electric vehicle (EV) company in terms of output and has consistently topped the overall vehicle sales charts in Europe. However, China’s BYD is now threatening to spoil Tesla’s happy ending.
Recent sales figures for the third quarter reveal that Tesla sold only 3,456 more EVs than BYD, moving 435,049 units compared to the Chinese firm’s 431,603. This is the closest the two automakers have ever come in terms of sales, and it can be partly attributed to downtime at Tesla’s plants, which caused a dip in its output for the first time in over a year.
But there’s more to the story than just production delays. BYD had already been closing the gap on Tesla throughout the second quarter of 2023, even without the production hold-ups. Its sales for the most recent three-month period were up 23 percent compared to the second quarter, putting it on track to pull level with Tesla by 2024.
The competition between BYD and Tesla is heating up, and some industry analysts predict that BYD will surpass Tesla in sales during the final quarter of this year. Taylor Ogan, CEO of Snow Bull Capital, confidently states, “BYD will sell more fully electric passenger vehicles than Tesla in the fourth quarter.”
BYD’s success is not limited to China. While its 431,603 figure represents EV sales only, when hybrid output is included, BYD sold a total of 822,094 vehicles, making it China’s top-selling car brand. What’s even more interesting is that 9 percent of BYD’s output in Q3 was shipped out of China, a significant increase from the previous quarter’s 5 percent. This expansion into global markets will be a key driver of volume for BYD next year as it introduces more new EVs.
However, both BYD and Tesla are under scrutiny from EU officials who are investigating Chinese state subsidies for EVs and their potential impact on Western carmakers. While BYD is the focus of the investigation, Tesla’s vehicles built in China will also face scrutiny. This battle between the two companies could become even more intriguing in 2024 as Tesla aims to chase volume and expand its global presence.
In conclusion, BYD’s rapid progress in the EV market is threatening Tesla’s position as the world’s biggest EV company. With sales figures narrowing and BYD’s expansion into global markets, it is becoming increasingly likely that BYD will surpass Tesla in sales. This competition between the two companies will undoubtedly make for an exciting and thrilling battle in the coming years. As the EV market continues to grow and evolve, it will be fascinating to see how these two giants navigate the challenges and opportunities that lie ahead.
