Chinese NEV giant BYD takes significant advantage in the global electric vehicle industry as the current industry leader, Tesla, suffered from declining sales in the third quarter of 2023.
However, it must be noted that Tesla’s weaker performance in Q3 2023 is largely due to its ongoing factory upgrades.
Q3 2023 results: Tesla vs. BYD
Bloomberg reports that BYD sold 3,456 more electric cars than Tesla in Q3 2023.
BYD’s performance
BYD’s battery-electric vehicle (BEV) sales reached 431,603 units from July to September. It represents a quarter-on-quarter growth of a notable 23%.
“BYD will sell more fully electric passenger vehicles than Tesla in the fourth quarter.”
Taylor Ogan, Shenzhen-based hedge fund Snow Bull Capital CEO
It is also worth noting that Ogan is a shareholder in both companies.
BYD’s overall NEV sales, including hybrids, hit a record-breaking 822,094 units. This strong performance enabled the brand to solidify its dominant position in its home market, China.
Additionally, exports contributed 9% of the company’s overall sales in the same period. It represents a notable growth of 5% from the prior quarter, Bloomberg Intelligence analyst Joanne Chen noted.
“This will be a key volume driver next year as BYD expands its global presence with more new EVs.”
Bloomberg Intelligence analyst Joanne Chen
Tesla’s sales decline
In contrast, Tesla’s sales and delivery figures failed to meet analyst estimates by more than 20,000 units in the third quarter. For context, Wall Street expected Tesla to deliver 461,640, per the analysts’ consensus polled by StreetAccount.
CNBC reported that Tesla delivered a total of 435,059 units and produced 430,488 EVs in the same quarter.
For reference, Tesla’s Q2 2023 deliveries were 466,140 units, while its production hit 479,700.
“A sequential decline in volumes was caused by planned downtimes for factory upgrades, as discussed on the most recent earnings call. Our 2023 volume target of around 1.8 million vehicles remains unchanged.”
Tesla
See Also:
- China EV sales in August 2023: Tesla, BYD, NIO, XPeng and Li Auto
- Tesla, BYD dominate the global EV industry, while Japanese rivals lag behind
- Tesla EVs get faster charging times with BYD batteries
- BYD nudges local brands to penetrate the global market and “demolish the old legends,” gains Tesla CEO’s respect
- Indonesia to launch new set of incentives for electric automakers, organizes a meeting with Tesla and BYD
Both Tesla and BYD risk losing a major advantage in Europe as government officials launched a probe into their EV subsidies and pricing. It can significantly affect their global sales and deliveries in the coming quarters.
It is also worth noting that BYD must still watch it back as Tesla would not just stand down. The imminent arrival of the Cybertruck and the revamped Model 3 Highland and Model Y launch will boost its sales. Moreover, the factory upgrades will also accelerate Tesla’s production ramp-up.
