BYD Surpasses Tesla in Quarterly Electric Vehicle Sales, Eyes Global Dominance
Chinese electric vehicle (EV) manufacturer BYD has emerged as a formidable contender to surpass Elon Musk’s Tesla as the world’s leading EV producer. The company announced on Monday that it achieved a milestone by selling a record 526,000 battery-only vehicles in the final quarter of 2023, fueled by a remarkable 70% surge in December sales.
For the entire year, BYD reported selling over 3 million “new energy vehicles” (NEVs), encompassing battery-only cars and hybrids. Of this total, nearly 1.6 million were battery-only vehicles. The Shenzhen-based company’s impressive sales figures have positioned it as a serious competitor to Tesla, which is expected to release its quarterly production and delivery statistics on Tuesday.
Industry analysts had previously estimated Tesla’s sales at approximately 483,000 electric vehicles in the last quarter of 2023, with a yearly total of 1.82 million. Elon Musk had initially expressed optimism about achieving 2 million deliveries in 2023 but later cited increased borrowing costs affecting demand for Tesla cars.
BYD’s success can be attributed to its comprehensive business approach, having originated as a rechargeable battery manufacturer before venturing into EVs. The company, founded in 1995 in Shenzhen by CEO Wang Chuanfu, entered the stock market in 2002 and expanded by acquiring the struggling state-owned car manufacturer Qinchuan Automobile Company. Since 2008, Warren Buffett’s Berkshire Hathaway has been a significant shareholder in BYD.
BYD’s strategic advantage lies in producing its own batteries, a critical component of EVs, thus saving costs compared to competitors relying on third-party manufacturers for this essential part. The company’s growth underscores the significance of vertical integration in the EV market, allowing BYD to establish itself as a major player in the global automotive industry.
