BYD, a Chinese company founded in 1995 by Wang Chuanfu, initially focused on producing rechargeable nickel-cadmium batteries. Over the years, the company has transformed into the world’s leading manufacturer of electric vehicles (EVs), competing with American giant Tesla. While BYD briefly surpassed Tesla in global sales of pure-play electric cars in the last quarter of 2023, Tesla quickly regained its position in the first quarter of 2024.
Tesla, with a market capitalization of about $560 billion, is the most valuable car company in the world. BYD, with a market cap of $81 billion, still trails companies like Toyota and Stellantis, but has surpassed BMW and Ford and is catching up to Mercedes-Benz and Ferrari. The two companies have been neck and neck in terms of global sales, with Tesla selling around 230,000 more cars than BYD in 2023, but the gap narrowing in recent years.
BYD’s competitive pricing has played a significant role in its rise to the top of the EV market, especially when compared to Tesla’s pricier cars. In response to increasing competition, BYD has slashed prices on some of its models, including the Yuan Plus crossover and the Seagull, in order to maintain its market share. While Tesla has also cut prices on some models in China, its cars still sell for more than double the prices of BYD’s models.
China is Tesla’s biggest market after the United States and accounted for 33% of global sales in 2023. The company started production at its Shanghai Gigafactory in 2019, with the facility delivering 947,000 cars last year. On the other hand, BYD does not sell cars in the United States but has a bus manufacturing plant in California. Both companies are expanding beyond their home markets and investing in factories abroad to meet growing demand for EVs.
In 2023, a total of 13.6 million EVs, including both BEVs and hybrids, were sold globally, with the Chinese market showing significant growth. BYD sold about 3 million electric cars in 2023, including 1.6 million BEVs, while Tesla delivered 1.8 million vehicles worldwide. The EV market is expected to continue growing in 2024, with sales projected to reach 10 million in China alone. Tesla’s shares are down 29% so far this year, while BYD stock is down almost 6%.
In conclusion, the rivalry between BYD and Tesla in the global EV market continues to intensify, with both companies making strategic moves to maintain their positions. BYD’s competitive pricing and focus on electric vehicles have helped it climb to the top of the charts, while Tesla remains a dominant force in the industry. With the EV market expected to grow further in the coming years, both companies are poised for continued success and expansion.
