BYD Overtakes Tesla as World’s Leading Electric Vehicle Seller

BENGALURU: In the fourth quarter, Tesla achieved a record-breaking number of electric vehicle (EV) deliveries, surpassing market expectations and meeting its 2023 target. However, China’s BYD has emerged as the top EV seller globally.

During the October-to-December period, Tesla delivered 484,507 EVs, slightly below the 526,409 vehicles handed over by Warren Buffett-backed BYD, predominantly in China. This shift suggests that, in a high-interest-rate economy, consumers are seeking more affordable EV options.

Although Tesla’s year-end sales efforts were largely successful, resulting in 1.8 million deliveries for the year, it fell short of CEO Elon Musk’s ambitious internal target of two million annual deliveries. Nevertheless, Tesla maintained its lead over BYD for the entire year, delivering a total of 3.02 million vehicles.

BYD’s success in deliveries indicates that its price-cutting strategy is effective, allowing the Chinese company to gain market share and recognition. The competitive pricing strategy may impact profit margins for both companies.

Despite its flat performance on Tuesday in a generally weaker market, Tesla’s stock had doubled in the previous year. To stimulate sales before certain variants of its compact Model 3 sedan lose US federal tax credits in 2024, Tesla increased discounts and offered incentives such as six months of free fast charging for customers who took delivery by the end of December.

Tesla’s delivery growth in the fourth quarter, up 11% from the previous quarter, exceeded estimates of 473,253, according to a poll of 14 analysts conducted by LSEG.

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