BYD, headquartered in Shenzhen and specializing in electric vehicles (EVs), stands on the cusp of surpassing industry giant Tesla to become the leading global EV manufacturer. Tesla’s recent factory downtime culminated in its first global delivery decline in over a year, creating an opportune moment for the Chinese automaker to stake its claim to the top spot.
In the third quarter of 2023, BYD recorded an impressive 431,603 sales of fully-electric vehicles, narrowly trailing behind Tesla’s tally of 435,059 cars. This razor-thin margin underscores BYD’s rapid ascent in the EV industry. However, BYD’s share price experienced a 3.6% dip in Hong Kong during Tuesday morning trade, a trend potentially influenced by the broader Hang Seng Index, which touched its lowest intraday level since November 2022.
Expanding beyond pure electric offerings, BYD achieved a milestone by selling a total of 822,094 vehicles, showcasing the brand’s increasing popularity among consumers. Diversifying its portfolio, BYD unveiled two premium luxury EV models in a bid to tap into the 1 million-yuan ($137,000) price category, along with two more budget-friendly options aimed at undercutting competitors.
The momentum in BYD’s favor extends beyond domestic markets; exports now account for 9% of the company’s total sales in the third quarter, a notable uptick from the previous 5%. Meanwhile, Tesla remains resolute in its commitment to rebound from the delivery decline, with CEO Elon Musk reiterating the company’s annual goal to sell 1.8 million vehicles.
In a striking contrast, BYD is well on track to surpass Tesla’s targets, with projections indicating sales of approximately 3 million vehicles, encompassing hybrids, for the current year. Both BYD and Tesla find themselves under the scrutiny of a European investigation into EV subsidies, as the competition in the burgeoning EV sector intensifies.
While Tesla recently reintroduced its base Model Y crossover sport utility vehicle with rear-wheel drive at a reduced price, in addition to making refinements to the Model Y in China, the price point remains unchanged. As BYD and Tesla continue to vie for dominance in the global market and an expanded share of the EV sector, the question remains: which industry juggernaut will cross the finish line first? The answer, it seems, is shrouded in anticipation.
Source: Bloomberg
