Tesla vs BYD in epic showdown: The biggest electric car battle that awaits 2025
Tesla and BYD have been gunning for the electric vehicle crown for some time now. But the stakes are all set to get higher still come 2025. Who will come out on top and who will have to walk away with the consolation prize?
The 2024 round has not yet been decided yet but both Tesla and BYD have been firing on all cylinders through the course of the past 12 months. While BYD offers both plug-in hybrids as well as all-battery models as against Tesla's electric-only lineup, it only recently began its global expansion project. Some dub it a ‘David vs Goliath’ battle but the question really is which is which?
Also check these Cars
82 kWh
555 km
2487 cc
Multiple
Also Read : BYD on track to top 2024 sales goal and outsell Ford, Honda globally
BYD is China's leading new-energy vehicle (NEV) company and has a formidable say in its home market which is also the world's largest automobile and EV market. Its recent expansion plans have helped it accelerate sales of its models even though it has no presence in the United States yet. From January to November of 2024, the company has managed to deliver more units than it had in January to November period of 2023. Analysts are now predicting a record Q4 2024 for the company. But will it be enough to scrape past Tesla?
Often credited for creating a massive lead against established automobile companies, Tesla has been the nearly-undisputed EV leader of the world in recent years. But it has not faced a challenge as big as BYD in recent years either. When numbers of PHEVs and EVs are combined, BYD sold twice as many units in 2022 as Tesla did. More significantly, for EVs alone, BYD had managed to sell more than Tesla in Q3 of 2023. But while Tesla staged a comeback and remains ahead, is it a lead it can hold on to?
Tesla vs BYD: Crunching the numbers
Since the 2024 numbers are not yet officially out, let's take 2023 as a case in point. BYD sold 3.02 million units in all of 2023 - this includes EVs and hybrids, for a 61 per cent year-on-year growth. Of this, approximately 1.60 million were pure EVs. But hold on to the throttle! The share of pure electrics was more than hybrids in 2023 for the company, something that has changed in 2024 with hybrids taking pole position.
As per a Reuters report, BYD sold 1.6 million hybrids and 1.2 million pure EVs worldwide between January and September of 2024. And with a target of selling 4 million units combined by the end of the calendar year, it would be interesting to see what sort of ratio it has for pure EVs alone, a fair comparison measure against a pure EV-only company like Tesla.
So how has Tesla fared? Hits and misses, really.
Tesla sold 1.80 million units in all of 2023 and this was a 38 per cent year-on-year increase. This was obviously more than the 1.60 million EVs sold by BYD in the same year.
Also Read : Tesla vows to change mass-transit game with its Cybercab
But there are strong indications that in 2024, major markets have shown increased preference for hybrids, something that has been observed in sales mix of BYD and something that Tesla cannot show as it offers no hybrids. What has therefore happened this year is that while CEO Elon Musk is targeting a record year for the company, the past 12 months have been a bit of a mixed bag.
BYD is targeting four million combined delivered in 2024. Tesla is expected to announce global deliveries of 1.81 million units in 2024, a near flat line with 2023. Consolation prize then?
Tesla's Trump card?
If Tesla's global delivery for 2024 is expected to be a on the same lines as its faring in 2023, why is its stock rising? If BYD has hybrid power, Tesla has twin powers in the form of Trump and autonomous drive tech.
Let's assess the first, first. Musk and US President-elect Donald Trump are extremely close. In fact, Trump was a key and very vocal supporter of Trump during campaigning before the US Presidential elections. He has now become an indirect advisor of sort to Trump who will start his second term at the White House from January 20. As per Bloomberg, the Trump Team has already made it clear it will seek to make self-drive rules easier in the US. This will benefit Tesla more than any other automobile company. Trump could also go easy on his plans of scrapping EV benfits announced by Joe Biden as indications are that Musk could convince him otherwise.
And remember, Tesla is not just about EVs. “Under Trump, with tax cuts, looser monetary policy, less regulation, and more favorable trade policies, the company could unlock its full potential," this Forbes report highlights.
Game, set and match Tesla? There is no crystal ball really to predict which side the EV battle will swing as both Tesla and BYD continue their respective march. Come 2025, it may well be a David vs David battle that dictates the fate of mobility for years and years to come.
Check out Upcoming EV Cars in India.
