Comparing Tesla Stock to BYD Stock: China’s EV Giant Launches Model 3 Rival, BYD Seal


The EV industry’s two fastest-growing behemoths are Tesla (NASDAQ:TSLA) and BYD Co. (SHE:002594). Tesla (NASDAQ:TSLA) and BYD (SHE:002594) are leading the way, even while a lot of attention is focused on startups like Rivian Automotive (NASDAQ:RIVN), Lucid (NASDAQ:LCID), Nio (NYSE:NIO), Xpeng (NYSE:XPEV), and Li Auto (HKG:2015), as well as established manufacturers like General Motors (NYSE:GM) and Ford Motor (NYSE:F) that are pursuing EVs. Better-than-expected profits from Tesla (NASDAQ:TSLA) on July 20 sent the stock substantially up. However, it is still far from its all-time high.

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. As part of a significant global expansion gathering steam, the EV powerhouse revealed plans to enter Japan with numerous EVs the following year. 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 will be available for purchase.

To deal with a small outbreak of Covid infections, Shenzhen’s BYD (SHE:002594) Shenzhen Industrial Park has shut down operations for a week. It shouldn’t significantly affect the outcome, though. What would be a better wager? Let’s compare Tesla (NASDAQ:TSLA) to BYD (SHE:002594) and the stock prices of the two companies.

Tesla Sales Vs. BYD Sales

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.

In June, BYD (SHE:002594) reported selling 134,036, up 224 % from a year earlier and about 17% more than May’s 114,943 new energy cars, including EVs and hybrids. The number exceeded 100,000 for the fourth consecutive month. Because of its internal chip and battery production, the EV giant could avoid lockdown-related problems to a considerable extent. Sales of 133,762 passengers NEVs, 69,544 EVs, and 64,218 PHEVs totaled in June. Buses and other commercial vehicles using fresh energy were among the 274 sold.

BYD (SHE:002594) sold 355,021 NEVs for the quarter, up 24 % over Q1’s 286,329 sales and 256 % from a year earlier. Although sales in other countries are anticipated to increase, less than 3,000 were shipped.

To win the EV title, BYD (SHE:002594) not only passed Tesla (NASDAQ:TSLA) but also outpaced the American giant by just over 100,000 vehicles. Naturally, Tesla (NASDAQ:TSLA) continues to be the market leader in electric cars, but BYD’s passenger EV sales did increase to 180,296 in Q2, dramatically closing the gap.

Given its new models, factories, and markets, BYD (SHE:002594) will likely retain its overall sales advantage in Q3 and beyond, even as Tesla’s (NASDAQ:TSLA) output starts to increase. By the end of March, BYD (SHE:002594) had ceased production of conventional gas-powered automobiles. 

Tesla vs. BYD: Electric Vehicles

Tesla (NASDAQ:TSLA) produces 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 make up the great bulk. 

The Roadster, Semi, and Cybertruck are three futuristic vehicles that Tesla (NASDAQ:TSLA) has long hailed. But they have often been postponed. The Cybertruck is on pace for mid-2023, according to Musk’s remarks on the Q2 earnings call.

This implies that Tesla (NASDAQ:TSLA) won’t release a new vehicle for at least three years after the Model Y in spring 2020. The Cybertruck will probably primarily target the American market. Therefore, until 2024 or later, Tesla (NASDAQ:TSLA) might not have a new vehicle for most of the world. Musk recently declared that Tesla (NASDAQ:TSLA) is not developing a $25,000 car after years of proclamations to the contrary. Even now, dozens of competitors would be encountered by such a vehicle, the most coming from Chinese EV manufacturers like BYD (SHE:002594).

Tesla stock vs. BYD stock

BYD (SHE:002594) is what Tesla (NASDAQ:TSLA) purports to be or strives to be in many aspects. Along with many other crucial components, BYD (SHE:002594) manufactures its semiconductors and batteries. It will soon start selling its batteries to Tesla (NASDAQ:TSLA) and other automakers. The $25,000 Tesla (NASDAQ:TSLA) has long been an aim of Musk. BYD (SHE:002594) already makes a profit while selling many EVs for under $25,000. Musk has considered going into the lithium mining industry. BYD (SHE:002594) is already.

Sales of BYD’s EV and PHEV units have surpassed those of Tesla (NASDAQ:TSLA), and the company is stepping up manufacturing and shifting its focus to more luxury models. Currently, at far higher price points than BYD (SHE:002594), Tesla (NASDAQ:TSLA) offers a significantly larger volume of pure electric vehicles. Both have reported phenomenal profits.

BYD (SHE:002594) has a lot of large markets to enter and grow in, including several this year. While growth prospects are bright, both EV titans provide far more vehicles than competitors. The two most significant EV stock market won in 2021 were Tesla (NASDAQ:TSLA) and BYD (SHE:002594). BYD (SHE:002594) recently reached record highs but has since declined. In response to earnings, TSLA stock rose, but it is still down significantly for the year.

Which stock is better, Tesla (NASDAQ:TSLA) or BYD (SHE:002594)? Both require improvement. Investors ought to pay close attention to them.

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