BYD Co (OTCMKTS:BYDDY), China’s premier automaker, is on the verge of challenging Tesla (NASDAQ:TSLA) for the title of the world’s largest electric vehicle (EV) seller. In the three months ending on September 30, BYD Co sold a staggering 431,603 fully electric vehicles, marking a remarkable 23% surge from the second quarter. Meanwhile, Tesla reported sales of 435,059 EVs during the same period, narrowing the gap between the two giants to just 3,456 units, the slimmest margin to date.
BYD has been actively broadening its market appeal by introducing two luxury EV models to its portfolio. These include the Yangwang and Fang Cheng Bao vehicles, with price tags of 1 million yuan ($137,000), more than double the cost of some of their earlier high-end models. A key contributor to BYD’s profitability is its capacity to manufacture its batteries and semiconductor chips, setting it apart from many other EV manufacturers. Furthermore, the company is gaining ground on the global stage with growing exports, seeking to bolster its international sales to complement its dominant position within China.
BYD’s overseas expansion has been fruitful, with exports accounting for 9% of the company’s Q3 sales, up from 5% in the preceding quarter, according to Bloomberg Intelligence. However, the company now faces new challenges in Europe as the European Union initiates an inquiry into Chinese subsidies for electric vehicles. Given the size of the European market and the rapid growth of EVs, potential tariffs stemming from this investigation could exert a more substantial impact than previous anti-subsidy measures against Chinese imports.
Tesla’s stock experienced a drop of over 2% today, triggered by its decision to reduce prices on its best-selling models in the U.S. This move follows Q3 vehicle deliveries that fell short of expectations. Tesla implemented price cuts of up to $2,250 on its Model 3 and $2,000 on its Model Y sport utility vehicles in an effort to stimulate demand. The company delivered 435,058 vehicles in Q3, a decline from the previous quarter and approximately 20,000 units below market consensus. To meet its annual target of 1.8 million vehicles, Tesla must deliver over 475,000 vehicles in Q4.
Some industry analysts are now entertaining the possibility that BYD Co is poised to overtake Tesla as the world’s leading EV automaker. Snow Bull Capital, which holds shares in both companies, stated, “BYD will sell more fully electric passenger vehicles than Tesla in the fourth quarter.” BYD Co is on track to match Tesla’s sales of 1.8 million EVs this year, a significant increase from the 1.31 million sold in 2022. In addition to its EV offerings, the company plans to sell a total of 3.6 million vehicles this year, positioning itself among the top 10 automakers globally in terms of unit sales. Having already surpassed Volkswagen as the best-selling car brand in China, BYD Co is now setting its sights on becoming the world’s leading EV brand.
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Author Faith Yakubu 
