BYD, the Chinese electric vehicle (EV) maker, is on track to surpass Tesla as the largest battery-electric vehicle producer globally. In November alone, BYD delivered over 301,000 passenger vehicles, showing a year-over-year growth of about 31%. Out of this total, more than 170,000 were all-battery electric vehicles (BEVs), indicating a steep increase of nearly 50% compared to the previous year. Additionally, BYD also sold about 131,000 plug-in hybrid vehicles during the same period.
The company’s growth trend continued through the first two months of the fourth quarter, with BYD delivering close to 336,000 BEVs, marking a significant year-over-year surge of approximately 55%. With this impressive rate of expansion, BYD is projected to deliver over 500,000 BEVs in the fourth quarter, outpacing Tesla’s estimated delivery of around 475,000 vehicles. If this scenario comes to fruition, it will be the first time since Tesla’s inception that the company has been second to another EV manufacturer.
As of November, BYD had already delivered almost 2.7 million vehicles in 2023, including approximately 1.4 million BEVs. While Tesla is expected to retain its position as the overall sales leader for the full year, BYD’s robust performance suggests a potential gap in Tesla’s product lineup.
BYD’s success can be partially attributed to its emphasis on producing more affordable vehicles. In 2023, the company is projected to generate around $88 billion in sales, amounting to an average of $29,000 per vehicle sold. On the other hand, Tesla’s average stands at about $54,000 per vehicle sold. This significant disparity is due to BYD’s extensive range of lower-priced models, a market segment that Tesla has yet to explore. The entry-level Model 3, Tesla’s most affordable offering, starts at approximately $37,000 in China.
To maintain its market share, Tesla has plans to broaden its product lineup. It aims to introduce a lower-priced Tesla vehicle, expected to hit the market in late 2024 or 2025.
In trading news, BYD’s stock experienced a 0.3% increase in overseas trading on Monday, while Tesla shares saw a marginal 0.1% decline in premarket trading. Simultaneously, S&P 500 and Nasdaq Composite futures were down 0.3% and 0.4%, respectively.
