In the last quarter of 2023, BYD, a Chinese corporation, outsold Tesla, owned by Elon Musk, in regards to electric vehicles, leading to a competition between the two for being the best in this field.
On Monday, BYD reported that the sales of battery-only vehicles during the fourth quarter of 2023 had hit an all-time high of 526,000.
It marked the first quarter where its battery-only sales surpassed those of Tesla, an American company whose demand has decreased as financing expenses increased.
Despite this,Tesla's sales for all of 2023 were still higher than those of Mr Musk.
Tesla announced on Tuesday that 484,500 electric vehicles were delivered during the fourth quarter of 2023, the highest number ever, and the total for the entire year was 1.8 million.
The performance at the close of the year was more impressive than anticipated, as sales soared 20% in comparison to the corresponding period in 2022 and showed an acceleration from earlier in 2023. Analyst Dan Ives from Wedbush Securities named the quarter a "definite success" for Tesla.
However, expectations were not met as initially anticipated. At the beginning of 2021, Musk declared that Tesla could hit two million sales in 2023.
The firm repeatedly slashed prices in order to entice buyers.
The accomplishment of BYD serves as a reminder of the obstacles ahead of the company, which was instrumental in the initiation of the electric vehicle industry.
BYD's speed up in the fast lane is a sign of the intense competition in the EV market, making it a struggle for Tesla to remain in the lead, according to Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Throughout the year, Shenzen-based BYD sold in excess of 3 million NEVs (comprising both battery-only and hybrid models).
The company reported that out of its total sales, nearly 1.6 million were solely electric-powered vehicles.
Wang Chuanfu, BYD's CEO, established BYD alongside his relative in Shenzhen back in 1995.
The company became well-known as a manufacturer of rechargeable batteries, which was able to compete with the more expensive Japanese imports. They are utilized in a variety of electronics, including smartphones and laptops.
Beginning in 2002, the company began trading its shares on the stock exchange, and broadened its business portfolio by acquiring a troubled state-owned vehicle producer, Qinchuan Automobile Company.
Starting in 2008, Berkshire Hathaway, headed by well-known US investor Warren Buffett, has been included as a shareholder of BYD.
Experts point to BYD's battery production as the key reason for the company's success. Manufacturing these components (which are often costly) internally is said to provide a great cost savings for BYD.
Several of BYD's rivals depend on outside suppliers for batteries.
The flexibility afforded BYD by its battery business enabled them to reduce prices drastically by the end of 2023, leading to increased sales; in December alone, these went up by 70%.
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