Tesla Vs. BYD 2023: BYD Has Seized The BEV Crown. The Coronation Will Come Later.

Tesla (TSLA) and BYD (BYDDF) are the two biggest names in the electric vehicle industry, closely competing with each other in China and globally. As much of the spotlight shines on new startups like Nio (NIO), Li Auto (LI), Xpeng (XPEV), Rivian (RIVN), and Lucid (LCID), the more established players like General Motors (GM), Ford Motor (F), and Volkswagen (VWAGY) also warrant attention.

In 2022, China-based BYD outpaced Tesla in vehicle sales, experiencing a rapid surge that could potentially propel it to the top position by the fourth quarter. Notably, BYD boasts substantially higher gross margins than Tesla and is closing the gap on net income and revenue. On the other hand, Tesla’s recent earnings report was disappointing, leading to a decline in stock value.

While Tesla remains the leader in battery electric vehicles (BEVs), the swift rise of BYD indicates that the race for the BEV crown is heating up. BYD has consistently seen record-breaking sales, signaling a strong year ahead.

Diving into sales figures, Tesla deliveries decreased in the third quarter, while BYD sold nearly as many all-electric BEVs as Tesla, and included plug-in hybrids in its sales count. The downward trend in Tesla’s production has sparked questions about its future, while BYD’s steady rise has positioned it to dominate the global BEV market.

Tesla’s decision to slash prices in response to increasing competition from Chinese manufacturers has further fueled the rivalry.

Looking toward the future, the release of new and revamped models from both companies is anticipated, with Tesla launching a revised Model 3 and the long-awaited Cybertruck, while BYD expands its lineup of electric vehicles. While both companies are expected to make significant strides in the industry, the battle for BEV dominance is far from over.

As the competition intensifies, all eyes will be on which company will ultimately claim the title as the world’s leading electric vehicle maker.