The competition in the electric vehicle market continues at full speed. Naturally, when we talk about this competition, two companies come to mind: Tesla, founded by Elon Musk in the US, and BYD, China’s rising star. While Tesla currently holds the lead, it has emerged that China’s BYD is catching up with sales. Here are the details...
BYD Surges, Challenging Tesla’s Sales Dominance
The competition between Tesla and BYD is becoming increasingly exciting. As Elon Musk’s company reaches saturation, the Chinese manufacturer continues to grow steadily. This, of course, is causing the gap between the two companies to narrow. In terms of numbers, BYD increased its sales by 21% in the second quarter of 2024, achieving 426,039 EV sales.
This figure is just 17,000 less than the 443,956 vehicles sold by Tesla during the same period. Considering BYD’s presence in fewer countries and its lower brand recognition, this achievement is quite impressive. It is also worth noting the significant role that China plays in the EV market.
Pricing and Market Strategy
Of course, the situation can be explained very clearly. While Tesla mainly produces high-priced vehicles such as the Cybertruck, BYD is known for its more affordable EVs. Despite affecting sales, Tesla maintains a strong profitability advantage. In June, Tesla’s EV sales in China dropped by 24.2% from the previous year to 71,007 units, marking the third consecutive annual decline.
Although the Chinese market appears challenging, trade tensions could alter this outlook. For instance, the European Union plans to restrict imports of Chinese electric vehicles, potentially boosting interest in Western brands like Tesla. It’s also noteworthy that Tesla is developing more affordable models. Nevertheless, warning signs are evident for Elon Musk’s company at present.
