The Tesla vs. BYD saga has pushed traditional automakers further to the sidelines. But which of the two relatively new automakers has the most say?
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Tesla and BYD have been eyeing the electric car crown for some time. But heading into 2025, the stakes are expected to be even higher. Who will come out on top and who should miss out on the consolation prize?
While the 2024 round has not yet been determined, both Tesla and BYD have been firing on all cylinders throughout the past 12 months. BYD offers both plug-in hybrid and all-battery models for Tesla’s electric-only lineup, but only recently began its global expansion project. Some are calling this a “David vs. Goliath” battle, but the question is, which one is it really?
Also read: BYD aims to exceed sales targets in 2024 and outsell Ford and Honda globally
BYD is China’s leading new energy vehicle (NEV) company and has a strong voice in its home market, which is also the world’s largest automobile and EV market. Despite not having a presence in the U.S. yet, recent expansion plans are helping accelerate sales of its models. From January to November 2024, the company managed to deliver more units than from January to November 2023. Analysts are currently predicting the company’s fourth quarter of 2024 will be its best on record. But will it be enough to overtake Tesla?
Tesla is often credited with building a significant lead over established car companies, and in recent years has become the near-universal global EV leader. But the company hasn’t faced as many challenges as BYD in recent years. Combining the number of PHEVs and EVs, BYD will have sold twice as many units as Tesla in 2022. More importantly, when it comes to EVs, BYD outsold Tesla in the third quarter of 2023. But while Tesla has made a comeback and remains in the lead, will it be able to maintain its lead?
Tesla vs BYD: Breaking down the numbers
Let’s use 2023 as an example, since the numbers for 2024 have not yet been officially released. BYD sold 3.02 million units in 2023 as a whole. This includes EVs and hybrids, which grew 61% year-on-year. Of these, approximately 1.6 million were pure EVs. But keep your foot firmly on the throttle! At the company, the share of pure electric vehicles exceeded that of hybrid vehicles in 2023, but the situation changed in 2024 with hybrid vehicles taking pole position.
According to a Reuters report, BYD sold 1.6 million hybrid vehicles and 1.2 million pure EVs worldwide from January to September 2024. The company is targeting sales of 4 million units by the end of the year, but it will be interesting to see what kind of products they sell. This is a fair comparison metric with pure EV-only companies like Tesla.
So what happened to Tesla? It’s really hit and miss.
Tesla sold 1.8 million vehicles in all of 2023, a 38% increase from the previous year. This clearly exceeded the 1.6 million EVs sold by BYD in the same year.
Also read: Tesla vows to change the public transportation game with CyberCab
However, there are strong signs of increased hybrid preference in key markets in 2024, as observed in BYD’s sales mix, which Tesla cannot demonstrate as it does not offer hybrid. So what’s happened this year is that CEO Elon Musk is aiming for a record year for the company, but the past 12 months have been a bit of a mixed bag.
BYD aims to deliver a total of 4 million vehicles in 2024. Tesla is expected to announce global deliveries of 1.81 million vehicles in 2024, which will be about the same as in 2023. So, a consolation prize?
Tesla’s trump card?
If Tesla’s 2024 global shipments are expected to be at the same level as 2023 shipments, why is the stock price rising? If BYD has hybrid power, Tesla will He has twin powers in the form of driving skills.
Let’s evaluate first. Musk and US President-elect Donald Trump have a very close relationship. In fact, Trump was an important and very vocal supporter of it during his pre-election campaign. He has now become a kind of indirect advisor to President Trump, who begins his second term in the White House on January 20th. According to Bloomberg, the Trump team has already made it clear that it aims to loosen self-driving rules in the United States. . This would benefit Tesla more than any other car company. Trump may be willing to cut back on Joe Biden’s plan to repeal the EV benefit, as Musk has indicated he may be able to persuade him to oppose it.
And don’t forget, Tesla is more than just an EV. “Under the Trump administration, the company could reach its full potential thanks to lower taxes, looser monetary policy, less regulation, and more favorable trade policies,” the Forbes report highlights. There is.
Games, Sets, and a Battle Against Tesla? As both Tesla and BYD continue their respective marches, there is no crystal ball that can accurately predict which side the EV battle will swing. 2025 could be a David vs. David battle that will determine the fate of mobility for years to come.
Check out the upcoming EV cars in India.
First edition publication date: December 30, 2024, 11:03 AM IST
