In the competitive electric vehicle (EV) market, Chinese automaker BYD surpassed Tesla in sales during the last quarter of 2023. BYD announced a record sale of 526,000 battery-only vehicles in the final quarter, marking the first time it has outdone Tesla’s sales in a single quarter. Tesla, however, faced slowing demand amid rising borrowing costs.
Despite this quarterly success for BYD, Tesla, led by Elon Musk, has maintained its lead in total annual sales. Tesla reported a record delivery of 484,500 EVs in the final three months and 1.8 million throughout 2023. Analyst Dan Ives of Wedbush Securities lauded Tesla’s Q4 performance as a significant victory, noting a 20% sales increase compared to the same period in 2022.
However, Tesla’s annual figures fell short of Musk’s earlier projection of two million deliveries in 2023, leading to multiple price cuts to attract buyers.
BYD’s achievement highlights the intensifying competition in the EV sector. Susannah Streeter, Head of Money and Markets at Hargreaves Lansdown, pointed out that BYD’s rapid growth underscores Tesla’s challenges in maintaining its market lead.
For the entire year, BYD, headquartered in Shenzhen, reported sales of over 3 million new energy vehicles (NEVs), including battery-only and hybrid models, with battery-only vehicles accounting for nearly 1.6 million.
Founded in 1995 by CEO Wang Chuanfu and his cousin, BYD initially made its mark as a rechargeable battery manufacturer, competing against more expensive Japanese imports. The company, which went public in 2002, later diversified by acquiring the state-owned Qinchuan Automobile Company.
Since 2008, BYD has been backed by Warren Buffett’s Berkshire Hathaway, contributing to its growth and recognition. Analysts attribute BYD’s success to its in-house battery production, a crucial factor given the high cost of batteries in EV manufacturing. This vertical integration has allowed BYD to price its vehicles competitively, with a notable 70% sales surge in December 2023 alone, contrasting with its rivals, who depend on external battery suppliers.
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