BYD All-Electric Car Sales Nearly Passed Tesla In Q3 2023

The two biggest electric car manufacturers in the world, Tesla and BYD, are increasingly facing off against each other in China and other parts of the globe. The number of cars sold by the two biggest producers of all-electric cars in the third quarter of 2023 was comparable, motor1 reported.

For the record, sales of EVs and batteries by BYD surpassed those of Tesla in 2022. Tesla continues to lead in all-battery electric vehicles (BEVs), but the difference is closing quickly. Before the end of 2023, BYD might take the lead in BEVs.

Tesla easily missed lowered analyst views when it reported its worst earnings in two years on October 18.

The Chinese carmaker sold 431,603 BEVs, just 3,456 fewer than Tesla. The two companies have never been so close, with BYD accounting for 99.2 percent of Tesla's sales (excluding commercial BEVs and plug-in hybrids).

All-electric car sales in Q1-Q3'2023 (YOY change): Tesla: 1,324,074 (up 46%) BYD: 1,048,413 (up 80%) or 79.2% of Tesla's result Difference to Tesla: 275,661 (down 16%) (Source: motor1) Tesla slashed prices globally in January, with additional cuts since then. The price cuts qualified Model 3 and Y vehicles for $7,500 US tax credits.

In response to Tesla and a general production cut, Chinese EV makers, including BYD, slashed prices.

Tesla has raised prices at times, but these have been easily offset by price cuts, significant inventory discounts, and other incentives, which continued in the third quarter. After significantly expanding its giant Shanghai factory last year, Tesla has increased capacity at its Berlin and Austin plants.

Despite Tesla slashing prices and limiting production to well below capacity, demand hasn't kept up with increased output. Tesla Shanghai is no longer required to export a large number of Model Y vehicles to Europe.

BYD is increasing EV and battery production, with additional China plants coming online. It is already constructing an EV factory in Thailand, with production set to begin in 2024. BYD announced in June that it would build an EV plant in Brazil. BYD is also expected to construct or acquire at least one plant in Europe.
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