BYD Co. stock (BYDDF) and Tesla stock (NASDAQ:TSLA) are two rapidly expanding EV titans. While startups like Rivian Automotive (RIVN), Lucid (LCID), Nio (NIO), Xpeng (XPEV), and Li Auto (LI), as well as established automakers like General Motors (GM) and Ford Motor (F) are moving into EVs receive a lot of attention, Tesla and BYD are leading the way.
On October 2, Tesla (NASDAQ:TSLA) announced record deliveries for the third quarter. Still, they fell well short of expectations because of growing concerns about China’s demand. Although Tesla’s Q3 earnings are coming Wednesday night, investors will concentrate on future expansion.
Despite mounting worries about the general market for EVs in China, BYD reported record-breaking September sales that surpassed 200,000 for the first time. Several new EVs, including a Tesla Model 3 challenger, has been introduced by the EV and battery giant. BYD reached Thailand, Laos, and India last week, and deliveries will start this month in several European nations. BYD’s expansion may be unmatched in the car sector in terms of both quantity and speed.
BYD released enormous preliminary third-quarter financial results. In a few weeks, we’ll most likely get the official findings.
Over the past four weeks, Tesla stock (NASDAQ:TSLA) has plummeted to a 15-month low. The price of BYD shares is down seven months.
Let’s compare Tesla (NASDAQ:TSLA) and BYD, as well as each company’s stocks.
Sales of Tesla vs. BYD
Tesla (NASDAQ:TSLA) announced Q3 deliveries of 343,830—up 42% from a year ago and higher than the record-breaking 310,048 in Q1. However, that fell far short of experts’ predictions of over 360,000. In the most recent quarter, Tesla manufactured 365,923 cars, more than 22,000 more than it delivered.
Tesla (NASDAQ:TSLA) highlighted transportation issues and vehicles in use. However, that seemed to indicate a last-minute switch to exporting cars built in Shanghai before China’s demand declined.
Along with 18,672 Model S and Model X premium EVs, Tesla delivered 325,158 Model 3 and Model Y vehicles in Q3.
After selling 174,915 new energy cars in August and 162,530 in July, BYD sold a record-breaking 201,259 in September. This increased 183% over the previous year. BYD sold 106,032 plug-in hybrids and 94,941 pure electric cars (BEVs) out of the 200,793 personal automobiles.
BYD sold 538,704 NEVs in Q3, up from 355,021 in Q2 and 194% more than a year prior.
Compared to Q2, the Chinese giant’s overall car advantage against Tesla (NASDAQ:TSLA) nearly quadrupled in Q3. Although BYD shipped 258,610 pure electric vehicles in Q3, it quickly closed the gap with the U.S. EV manufacturer, who still leads in BEV deliveries.
BYD signed an agreement to supply more than 100,000 EVs to SIXT, a major German automobile rental company, over six years on October 4. Then arrangements with Hertz for Tesla and GM electric vehicles (HTZ). According to SIXT, the Atto 3 will be made accessible to clients in the fourth quarter, which claims it would first buy several thousand BYD EVs.
BYD vs. Tesla Expansion
In March and April, respectively, Tesla established its facilities close to Austin, Texas, and Berlin, Germany. For such sites, Model Y manufacturing is still sluggish but slowly increasing.
Although output in July and the beginning of August was hampered, recently completed renovations to the Tesla Shanghai site greatly increased manufacturing capacity.
Though Tesla China’s demand is finding it difficult to keep up with rising production, in September, wait times at Tesla China were almost nonexistent. Mid-September saw the launch of a new insurance subsidy from Tesla, which was recently extended through the end of the year. Tesla has started offering 0% down payments and special lending rates as of October 1. These incentives essentially lower prices. Tesla is announcing explicit price reductions in China, although this hasn’t happened yet.
According to the China Passenger Car Association, Tesla Shanghai delivered 83,135 cars in September. Tesla sold 77,613 of those domestically, and just 5,522 were exported. After the Q3 worldwide delivery shortfall, some could have predicted a worse local sales mix.
Tesla (NASDAQ:TSLA) manufacturing could increase significantly in Q4 compared to Q3, notably in Shanghai; thus, worldwide demand must also pick up speed.
To ease worries about domestic demand, Tesla (NASDAQ:TSLA) will export even more of its Shanghai output. However, backlogs in Europe have also started to decrease. In August, Tesla started selling a new, significantly less expensive basic Model Y in Europe.
BYD is also significantly increasing its EV and battery capacity.
The auto industry behemoth has stated that it expects to sell at least 1.5 million NEVs in 2022 and maybe as much as 2 million. Deliveries should surpass 1.8 million, with a strong possibility of 1.9 million or more deliveries.
By year’s end, BYD plans to deliver 280,000 vehicles every month, according to Chairman Wang Chuanfu on September 2. He specified a four million delivery target by 2023. He added that BYD has a 700,000-vehicle backlog.
Tesla (NASDAQ:TSLA) has far higher selling prices than BYD since it caters to the premium and budget luxury sectors.
Most BYD EVs and hybrids are priced between $15,000 and $34,000, while an increasing number are priced beyond $40,000. The average selling price is rising.
The world’s largest EV company does intend to upgrade considerably.
A high-end brand, according to BYD, will debut in June 2023 with plans for an off-road vehicle, a luxury sedan, a high-end SUV, and a super automobile. This brand is aimed at the 800,000 yuan ($115,960) to the 2 million yuan market.
In the coming days, BYD’s Denza division, which is 10% owned by Mercedes-Benz, will start shipping D9 minivans. In October, the business anticipates 3,000 deliveries, and by December, 10,000. It begins at slightly under $50,000 and is available in EV and PHEV versions.
Early in 2023, a Denza SUV should be introduced.
Tesla vs. BYD: Electric Vehicles
Tesla (NASDAQ:TSLA) makes four all-electric vehicles: the Model 3 sedan, the Model Y crossover, the opulent Model S SUV, and the Model X SUV. The Model 3 and Model Y comprise the great majority, with the Model S and X now being mostly restricted to North America.
The Cybertruck, Roadster, and Semi have all experienced several postponements. According to Musk, the Cybertruck will be ready by mid-2023. However, he predicts that pricing and specifications, which are ambitious even when compared to other Tesla vehicles, won’t be as stated in the first Cybertruck promises from 2019.
Musk announced in a tweet on October 6 that the 2017 Tesla Semi is in production and will begin delivering vehicles to PepsiCo (PEP) on December 1. He claimed that the Semi’s range would be 500 miles. However, many important details are still unknown, like effective range with cargo, pricing, the type of batteries utilized, and more.
It’s also unknown if the Semi will be created in bulk or in small quantities.
The Cybertruck will likely mostly service the American market in the meantime. Therefore, it’s possible that Tesla (NASDAQ:TSLA) won’t release a brand-new passenger EV until 2024.
Going the future, especially in China, an aging model portfolio might be an issue.
Musk recently declared that Tesla is not developing a $25,000 car after years of proclamations to the contrary. Even now, hundreds of competitors would be encountered by such a vehicle, the most coming from Chinese EV manufacturers like BYD.
BYD vs. Tesla: Big And Small BYD EVs
There are several models from BYD, some of them hybrid and electric. In the upcoming months, the carmaker will release several new hybrid-only and electric-only cars.
The Seal sedan is BYD’s first obvious direct rival to Tesla (NASDAQ:TSLA). Similar in size and range to a Model 3, the BYD Seal is $10,000 less expensive. The starting price of the Seal is 212,800 RMB ($31,130), compared to a made-in-China Model 3’s 279,900 RMB ($41,950).
Late in August, BYD began delivering Seals; by September, 7,473 Seals had been delivered. The production is anticipated to continue increasing and will reach several foreign markets in 2023.
On the cheap end, a BYD Seagull hatchback with an MSRP of close to $20,000 will shortly be on sale.
The Seal Lion, an all-electric SUV that might compete with the Tesla Model Y at a significantly lower price, will be unveiled by BYD in a few months.
The Frigate 07, a mid-sized SUV and the second Model in the Warship family of plug-in hybrids, were recently presented by BYD. Sales of the Destroyer PHEV sedan, introduced this spring, are rising.
Along with having factories in China, BYD is also one of the major manufacturers of electric buses. Delivery trucks, heavy rigs, garbage trucks, and other vehicles are all produced by BYD.
At its Lancaster, California, facility, BYD manufactures buses, large rigs, and other heavy vehicles for the American market.
Fundamentals of BYD vs. Tesla Stock (TSLA)
Compared to 75 cents in 2020 and barely 1 cent in 2019, Tesla’s earnings more than quadrupled to $2.26 per share in 2021.
Tesla’s Q2 sales increased by 42% and its profitability by 57%, both above expectations. That happened despite major obstacles, most notably the protracted production stoppage in Shanghai and the gradual restart. In comparison to Q1, earnings and sales decreased.
Tesla’s October 19 results are coming in the evening. While investors will be seeking assurances regarding future growth, including delivery and additional goods, earnings and sales growth should be strong.
In 2021, BYD’s profits decreased. With significant expenditures on a new car, battery, and chip factories, capital investment in 2017 topped capex from 2018–20 combined. Production of EVs and PHEVs has risen sharply in recent months and is still rising. Massive increases in sales and profits are being driven by this now and in the future.
On August 29, BYD said that Q2 net profit increased 197% in local currency over the same period last year, while sales increased by 68%. Over Q1, net profit increased by 245%.
As deliveries soar and prices rise in the second half, analysts expect profitability and margins to improve further.
BYD provided third-quarter preliminary data on October 17. Net profit increased from 334% to 365%, while adjusted profit increased by 879% to 1,015%.
Featured Image: Megapixl © Sergiomonti
Author Valerie Remorosa 
