In Q4 2023, BYD beats Tesla in electric car sales.

When it comes to sales of electric cars, China's BYD surpasses Tesla in the final quarter of 2023.

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As Elon Musk’s Tesla and the Chinese business BYD competed for the top place in the electric car market in the final three months of 2023, BYD succeeded in selling more electric vehicles than Tesla did.

On Monday, BYD said that it has achieved a record number of total sales of 526,000 battery-only vehicles during the last quarter of 2023.

It was the first quarter in which its sales of battery-only vehicles had surpassed those of Tesla. As the cost of borrowing money continues to rise, the company located in the United States has noticed a decrease in demand.

However, during the entirety of the year 2023, Mr. Musk’s Tesla continued to sell more vehicles.

Tesla announced on Tuesday that it had delivered a record number of 484,500 electric vehicles in the last three months of 2023 and that it had delivered 1.8 million electric vehicles for the whole year.

As a result of sales that increased by twenty percent compared to the same period in 2022 and picked up pace from earlier in 2023, the performance after the year was better than what experts had anticipated. The quarter was a “clear win” for Tesla, according to analyst Dan Ives of Wedbush Securities, who described the company.

However, it did not live up to the expectations that were first set. According to statements made by Mr. Musk in January of last year, Tesla can accomplish two million deliveries by the year 2023.

The company made many price reductions to attract customers.

The achievement of the milestone by BYD serves as a reminder of the problems that the company is now experiencing, which contributed to the beginning of the electric car sector.

Susannah Streeter, who is the head of money and markets at Hargreaves Lansdown, stated that “as BYD has accelerated into the fast lane, it is fresh evidence of just how competitive the electric vehicle market has become and how difficult it will be for Tesla to swerve back to head the pack.”

Shenzen-based BYD sold more than three million so-called new energy vehicles (NEVs) during the whole year. These NEVs include hybrids as well as cars that are powered solely by batteries.

Battery-only cars accounted for about 1.6 million of the company’s total sales, according to the company.

In 1995, Wang Chuanfu, the current chief executive officer of BYD, and his cousin established the company in Shenzhen.

With the ability to compete with more expensive Japanese imports, the firm established itself as a maker of rechargeable batteries, which are utilized in a variety of electronic devices such as laptops, cellphones, and other electronic devices.

During the year 2002, it began selling its shares on the public market and diversified its operations by buying Qinchuan Automobile Company, a state-owned automobile manufacturer that was experiencing difficulties.

BYD has identified Berkshire Hathaway, which is owned by the renowned American billionaire Warren Buffett, as a stakeholder since the year 2008.

BYD is said to owe its rise to its primary business, which was batteries, according to analysts. Making them in-house allows BYD to save a significant amount of money, as they are among the most expensive components of an electric vehicle.

Battery production is outsourced to several BYD’s rivals, who rely on third-party manufacturers.

As a result of BYD’s battery business, the company was able to reduce prices significantly at the end of 2023, which resulted in an increase in sales that increased by 70 percent in just the month of December.

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