Once laughed at by Elon Musk, China's BYD overtakes Tesla for first time ever
Tesla has been dominating the electric vehicle (EV) scene across the world and has led the way for several years now. Even in the fourth quarter of 2023, Tesla managed to deliver an impressive 484,507 vehicles. But this number was less than what China's BYD delivered in the same time period. And yes, BYD is the same company that was laughed at by Elon Musk during a 2011 interview.
Headquartered in Shenzen, BYD has been taking mammoth strides in the world of electric cars and in the final quarter of 2023, delivered 526,409 vehicles across the globe. Not only was this higher than what Tesla had delivered but higher by a significant margin. Pressing down on Tesla's pain point, BYD also manufactured more vehicles in the fourth quarter than the Musk-led company did.
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Interestingly, BYD also manufactures hybrid vehicles while Tesla only offers fully battery-powered models. But BYD's lead comes taking into account sales of its battery-only models alone. It sold another 400,000 hybrid electric models in the final 2023 quarter.
BYD vs Tesla: The biggest battle in world of EVs
Tesla enjoys a cult status in many markets where it offers its EVs. Led by Musk, the world's wealthiest person at present, the company has managed to leave established auto brands far behind even though it still is only present in a handful of markets. Its major markets are China, the US and western European countries.
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BYD, on the other hand, is the biggest player in the Chinese EV scene and has started to expand its footprint to European markets as well. Established in 1995 as a battery-manufacturing company, BYD started manufacturing cars in 2023. But it is its strategy to have only fully electric and hybrid models, a decision taken in March of 2022, helped it pool in all its efforts towards these new-energy vehicles.
Experts say that while BYD may be operating only in China and select European markets, it is benefiting enormously from support from the Chinese government and a booming demand in its home country. If the brand enters US shores, which at present it has steered clear of due to high import costs, it could leave Tesla significantly behind.
Challenging the champion or championing a challenge?
Back in 2011 when Tesla was fairly successful but had not tasted the giddy highs of today, Musk was asked for his opinion on BYD during the course of an interview with Bloomberg. He had laughed it off at the time. “Have you seen their car?" he had said.
But in 2019 when Tesla had opened its first plant in China, Musk was also asked which EV company he feels has the best chance to challenge Tesla. And while he had not taken any names, he had said Chinese brands stand the best chance to be second to Tesla.
Where is Tesla going?
BYD may have overtaken Tesla but the US company is still wearing the crown. For how long is an entirely different question. The deliveries in the final quarter of 2023 was a personal best for Tesla, up by 11 per cent from the previous quarter. In all of 2023, the company delivered 18 lakh units across the globe which is 38 per cent higher than in the previous year. In comparison, BYD delivered 16 lakh units in the same period.
