(qlmbusinessnews.com Wed, 3rd Jan, 2024) London, UK —
“BYD Surges Past Tesla: Electric Vehicle Showdown in the UK's Final Quarter of 2023”
Chinese firm BYD has outpaced Elon Musk‘s Tesla in electric vehicle sales during the final quarter of 2023, marking a significant milestone in the competition between the two companies in the UK market.
On Monday, BYD announced a record-breaking sale of 526,000 battery-only vehicles in the last three months of 2023. This quarter marked the first time BYD's electric vehicle sales surpassed those of Tesla, which has been grappling with slowing demand amid rising borrowing costs.
While Tesla faced challenges in the last quarter, the US-based company still outperformed BYD in the overall sales for the entire year of 2023. Tesla reported delivering a record 484,500 electric vehicles in the last quarter and 1.8 million for the entire year, exceeding analysts' expectations. Despite this positive outcome, Tesla fell short of Elon Musk's earlier projection of achieving two million deliveries in 2023.
To boost sales, Tesla implemented price cuts throughout the year, a strategy that proved effective in the last quarter. Analysts, including Dan Ives of Wedbush Securities, deemed the quarter a “clear win” for Tesla, although it did not reach the initial optimistic targets set by Musk.
BYD's achievement highlights the intense competition within the electric vehicle market and poses challenges for Tesla to regain its leading position. Susannah Streeter, Head of Money and Markets at Hargreaves Lansdown, stated, “As BYD has accelerated into the fast lane, it's fresh evidence of just how competitive the EV market has become and how hard it will be for Tesla to swerve back to head the pack.”
For the entire year of 2023, BYD, based in Shenzen, sold over 3 million new energy vehicles (NEVs), encompassing battery-only vehicles and hybrids. Of this total, nearly 1.6 million were battery-only vehicles. BYD's Chief Executive, Wang Chuanfu, co-founded the company in 1995, initially gaining recognition as a rechargeable battery manufacturer before diversifying into the electric vehicle sector.
BYD's success is attributed to its in-house battery production, allowing cost savings, as batteries are one of the most expensive components of an electric vehicle. Unlike many competitors relying on third-party manufacturers for batteries, BYD's vertical integration strategy contributed to its ability to sharply reduce prices at the end of 2023, resulting in a 70% surge in sales in December alone.
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