Tesla (NASDAQ:TSLA) and BYD Co. (SHE:002594) are two rapidly expanding EV juggernauts. While startups like Rivian Automotive (NASDAQ:RIVN), Lucid (NASDAQ:LCID), Nio (NYSE: NIO), Xpeng (NYSE:XPEV), and Li Auto (HKG:2015), as well as established automakers like General Motors (NYSE:GM) and Ford Motor (NYSE:F) moving into EVs receive a lot of attention, Tesla (NASDAQ:TSLA) and BYD (SHE:002594) are not surprisingly (for many) leading the way.
Tesla’s shares rose significantly during the following few sessions after it released earnings that were better than expected on July 20. BYD (SHE:002594) just announced a preliminary first-half profit that has skyrocketed. After falling due to Warren Buffett’s speculations, shares have since recovered, but BYD (SHE:002594) still has to be set up.
Despite being the two biggest EV manufacturers, Tesla (NASDAQ:TSLA) and BYD (SHE:002594) haven’t engaged in much direct competition. However, the BYD (SHE:002594) Seal competes against the Tesla (NASDAQ:TSLA) Model 3. On July 29, The Seal went on sale formally.
The world’s largest EV company is about to launch a significant global expansion, with launches planned for Asia, Europe, and other regions. Which is the wiser choice? Let’s compare Tesla (NASDAQ:TSLA) and BYD (SHE:002594), as well as each company’s stocks.
Sales of Tesla vs. BYD
Tesla’s Q2 deliveries were 254,695, somewhat less than expectations of roughly 256,000. That was up 26.5% from Q2 2021 but down about 18% from the record-breaking 310,048 for the first quarter. Compared to Q1’s 305,407 automobiles, Tesla (NASDAQ:TSLA) manufactured 258,580 in Q2. According to Tesla (NASDAQ:TSLA), output reached a record high in June.
The declines are due to the lockdowns in Shanghai. Tesla (NASDAQ:TSLA) Shanghai had limited manufacturing until the beginning of June after being closed for most of April.
BYD (SHE:002594) announced 134,036 new energy vehicle sales in June, up 17 % from May’s 114,943 and 224 % from a year earlier. The previous four months had all exceeded 100,000. Thanks in significant part to its internal chip and battery operations, the EV giant was able to avoid lockdown-related problems.
Given its plethora of new models, factories, and markets, BYD (SHE:002594) will likely maintain its overall sales advantage in Q3 and beyond, even as Tesla’s (NASDAQ:TSLA) output starts to increase. Early in August, the manufacturer will announce July sales. Unverified local media reports claimed that new BYD (SHE:002594) registrations exceeded 149,000, which would mean July sales significantly exceeded June’s record 134,036. At the end of March, BYD (SHE:002594) ceased production of conventional gas-powered automobiles.
Tesla Vs. BYD Expansion
Tesla’s factories close to Austin, Texas, and Berlin, Germany, just started shipping Model Y units. However, over time, output and deliveries will gradually increase. Production will also expand due to ongoing capacity expansions at the Shanghai Tesla (NASDAQ:TSLA) site. According to reports, the Model Y production modifications are complete, and a brief break in Model 3 production is anticipated.
Analysts anticipated that Tesla (NASDAQ:TSLA) would deliver 1.5 million electric vehicles in 2022, Shanghai’s Covid closure and protracted limited production may prevent that.
The Chinese EV company does intend to considerably upgrade. Before the end of the year, it will debut its first model and a high-end brand. According to a BYD (SHE:002594) executive who stated that the brand would target the luxury market of 800,000 ($119,520) to 1.5 million yuan automobiles in May, the first model will be an off-road SUV. Large sedans could be the second model. A minivan in EV and PHEV variants will start being delivered in August by BYD’s Danza unit, which is 10% owned by Mercedes-Benz. The price ranges from under $50,000 to $69,000 for some variations. Later this year, a Danza SUV will be launched.
Featured Image: Megapixl © Nejaunet
