Chinese company BYD is making significant strides in becoming the world’s leading electric vehicle manufacturer, posing a serious challenge to Elon Musk’s Tesla.
On Monday, BYD announced the sale of a remarkable 526,000 battery-only vehicles in the final quarter of 2023, with December alone witnessing a staggering 70% increase in sales.
Tesla, headquartered in the United States, is set to reveal its latest quarterly vehicle production and delivery figures on Tuesday, as it faces growing competition from BYD.
For the entire year, BYD reported selling over 3 million “new energy vehicles” (NEVs), encompassing both battery-only vehicles and hybrids, with nearly 1.6 million being exclusively battery-powered.
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While industry analysts estimate Tesla’s electric vehicle sales at around 483,000 units in the last quarter of 2023 and 1.82 million for the entire year, BYD’s robust performance suggests a genuine threat to Tesla’s dominance.
In January, Elon Musk expressed confidence in achieving 2 million deliveries in 2023 but later acknowledged that rising borrowing costs were impacting demand for Tesla cars.
Meanwhile, BYD’s CEO Wang Chuanfu, who co-founded the company in Shenzhen in 1995, played a crucial role in its growth by initially focusing on rechargeable batteries.
The company began trading its shares in 2002 and expanded its portfolio by acquiring the struggling state-owned car manufacturer Qinchuan Automobile Company in 2008.
BYD’s strategic decision to produce batteries in-house, a legacy from its origins as a battery manufacturer competing with Japanese imports, has contributed significantly to its success.
Analysts note that making batteries internally, one of the most expensive components of an electric vehicle, allows BYD to save substantial costs, distinguishing it from competitors who rely on third-party battery manufacturers.
Since 2008, BYD has counted Warren Buffett’s Berkshire Hathaway as a shareholder, further enhancing its credibility and financial stability.
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