- Tesla (TSLA) and BYD (BYDDF) are the world’s largest electric-vehicle makers.
- BYD’s vehicle sales raced ahead of Tesla’s in 2022, but Tesla regained the title in Q1 2024.
- Both EV giants reported big first-quarter delivery declines vs. the fourth quarter, partly due to seasonal weakness in China as well as stalling EV demand globally.
As the world’s largest electric vehicle makers, Tesla and BYD face off in a fierce competition. This article delves into their sales, strategies, and future prospects in the ever-evolving EV market.
Tesla Vs. BYD Sales
Elon Musk expects Tesla deliveries to rise in 2024, despite a sharp decline in Q1 deliveries. Tesla delivered 386,810 vehicles in Q1, down from Q4 2023’s record 484,507 EVs. The majority of Tesla sales are for the crossover Model Y. On the other hand, BYD announced first-quarter sales of 626,236 EVs, up 13.4% vs. a year earlier. BYD looks set to reclaim the BEV crown from Tesla in Q2.
Tesla, BYD Cutting Prices
Tesla has slashed prices worldwide since late 2022 to prop up sales. In contrast, BYD has also cut prices on most of its models, but this hasn’t affected its profit margins.
Tesla Models
Tesla produces the Model 3, the Model Y, Model X and Model S, as well as the Semi and Cybertruck. The Model Y crossover accounts for the majority of sales. The Cybertruck has been produced in relatively low volume, in part due to quality issues.
Tesla ‘Affordable Vehicles’ And Robotaxi
Tesla plans to produce “affordable vehicles” soon with only “aspects” of next-generation features, using existing production lines. Meanwhile, Elon Musk has made a stronger push for robotaxis. He plans a robotaxi event on Aug. 8, though it’s unclear what that will entail.
BYD Expansion
BYD sells BEVs and PHEVs from around $10,000 to $150,000, with a wide range of models. It’s refreshing much of its lineup, while adding several new models. BYD also is expanding rapidly overseas. Exports are a small share of overall sales, but growing rapidly as logistics improve.
Tesla Vs. BYD Batteries
Tesla traditionally has not mass produced its own batteries. It buys lithium-ion batteries from South Korea’s LG and China’s CATL as well as some LFP batteries from BYD. Meanwhile, BYD is one of the world’s largest EV battery makers. Its Blade batteries are a specialized LFP.
Tesla’s Other Businesses
Tesla has its own Supercharger network in its markets. It also has a solar installation business, but it’s been struggling. Tesla’s self-driving ambitions continue. Musk is doubling down on the FSD as the traditional EV business is struggling.
BYD’s Other Businesses
BYD makes its own chips. That, along with the in-house batteries and other vertical integrations, help make BYD a low-cost EV maker. The EV and battery giant also has solar operations.
Conclusion
Both Tesla and BYD are making significant strides in the EV market. While Tesla focuses on affordable vehicles and robotaxis, BYD is expanding its model lineup and overseas presence. The competition between these two EV giants is expected to intensify in the coming years.
