BYD Overtakes Tesla as World’s Top Electric Vehicle Seller in Q4
Chinese automaker BYD Co has officially overtaken Tesla Inc as the world’s top seller of fully electric vehicles in the fourth quarter of 2023. According to an exchange filing on Monday, BYD sold 526,409 fully electric vehicles in the last quarter of the year, surpassing Tesla’s expected sales of 483,200 units. This marks the first time BYD has outsold Tesla on a quarterly basis.
BYD’s success can be attributed to aggressive end-of-year discounting, with EV and hybrid sales of 340,178 in December alone. The company sold a total of 3.01 million units in 2023, almost as much as its EV and hybrid sales over the previous five years combined. This impressive growth has also catapulted BYD into the top 10 ranking of global car sales for the first time.
Starting an industry price war in China, Tesla’s shares rose 130% last year. In contrast, BYD’s shares fell almost 24% in 2023, with an accelerated decline since mid-November due to competitive pressures, price cuts, and concerns about meeting sales targets.
BYD’s aggressive global expansion plans have also contributed to its success, with the company recently choosing Hungary as the location for its first production line in Europe. This move comes despite an ongoing EU anti-subsidy investigation into Chinese EVs.
While BYD’s success is impressive, it is important to note that Warren Buffett, CEO of Berkshire Hathaway, has over 40 holdings in the company’s portfolio, including Occidental Petroleum, Apple, and BYD Company. Buffett’s traditional investment style, focusing on solid fundamentals, contrasts with the high valuations and non-traditional nature of A.I. Plays. This raises questions about potential shifts in Buffett’s investment strategy and whether A.I. could be in view.
BYD’s record-breaking sales in the fourth quarter of 2023 have solidified its position as the world’s top electric vehicle seller, overtaking Tesla for the first time on a quarterly basis.
