(Credit: Transcript by OpenAI Whisper)
BYD Posts Record Sales Quarter To Challenge Tesla At Own EV Game Chinese automaker BYD Company sold 526,409 fully electric vehicles in the fourth quarter, meaning Tesla Inc. will need a record showing to maintain its number one status when it unveils sales figures on Tuesday. China's best-selling car brand reported EV and hybrid sales of 340,178 in December, including 190,754 all-electric cars, aided by aggressive end-of-year discounting, according to an exchange filing Monday. In total, BYD sold 3.01 million units in 2023. Read more, Tesla loses world's most popular EV maker title to China's BYD. BYD should find out within days whether it has sold enough cars to overtake Tesla for the first time on a quarterly basis to become the world's biggest seller of fully electric EVs. Analysts tracking Elon Musk's Tesla expect it to shift around 483,200 units, according to estimates compiled by Bloomberg. A revamped Model 3 and the stainless steel-clad Cybertruck, which began deliveries at the end of November, may give Tesla's full-year 1.8 million sales target a late boost. The U.S. automaker has also been gradually adjusting sticker costs in the U.S. and China, where it initiated a price war in late 2022 that extended into 2023. BYD's full-year volumes were almost as much as its EV and hybrid sales over the previous five years combined. The Shenzhen-based company, who had a 3 million annual sales target, saw rapid growth in 2023 that catapulted it into the top 10 ranking of global car sales for the first time. BYD shares fell almost 24% in 2023, with an accelerated decline in the stock since mid-November as competitive pressures, price cuts, and concerns it cannot meet sales targets pummeled the company's valuation. Despite starting an industry price war in China, Tesla shares rose 130% last year. BYD continued its aggressive global expansion plans in the past 12 months, recently picking Hungary over other European countries to establish its first production line on the continent. The plant in the southern city of Szeged will produce EVs and plug-in hybrids for the European market and create thousands of jobs. The announcement came despite an ongoing EU anti-subsidy investigation into Chinese EVs. China's 2023 new energy vehicle retail sales are expected to rise 36.5% year-on-year to about 7.75 million units, the nation's passenger car association said in preliminary estimates released in December.
Key Takeaways from the Article:
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BYD's Record Sales Quarter: BYD Company, a Chinese automaker, reported record sales of 526,409 fully electric vehicles (EVs) in the fourth quarter, challenging Tesla Inc.'s leading position in the EV market.
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Tesla's Sales Comparison: Tesla needs a record quarter to maintain its status as the number one EV seller. Analysts expect Tesla to report sales of around 483,200 units, with new models like the revamped Model 3 and Cybertruck potentially boosting its sales.
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BYD's Aggressive Marketing: BYD's significant sales in December were aided by aggressive end-of-year discounting. The company sold a total of 3.01 million units in 2023, nearly matching its EV and hybrid sales over the previous five years combined.
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Global Market Position: BYD's rapid growth in 2023 has placed it in the top 10 ranking of global car sales for the first time, achieving a significant milestone in the automotive industry.
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Stock Market Performance: Despite its sales success, BYD's shares fell almost 24% in 2023 due to competitive pressures and concerns over meeting sales targets. In contrast, Tesla's shares rose by 130% last year.
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Expansion in Europe: BYD is expanding its global presence, choosing Hungary to establish its first production line in Europe. This plant in Szeged will produce EVs and plug-in hybrids for the European market, creating thousands of jobs.
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Impact of Regulatory Environment: The expansion comes amidst an ongoing EU anti-subsidy investigation into Chinese EVs, highlighting the complex regulatory environment for global EV manufacturers.
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China's EV Market Growth: China's new energy vehicle retail sales are expected to rise 36.5% year-on-year to about 7.75 million units, as per the nation's passenger car association.
This article underscores the intensifying competition in the global EV market, with BYD emerging as a formidable contender to Tesla, while also highlighting the broader trends and challenges in the automotive industry.