BYD, a Chinese company founded by Wang Chuanfu in 1995, has become a global leader in the production of electric vehicles (EVs), surpassing American giant Tesla in sales of pure-play electric cars in the last quarter of 2023. Despite this achievement, Tesla regained its lead in the first quarter of 2024, showing that the competition between the two companies remains close. Tesla’s market capitalization of about $560 billion makes it the most valuable car company in the world, while BYD’s $81 billion market cap places it among the top 10 automakers globally.
In terms of market capitalization, Tesla is significantly ahead of BYD and other major automakers such as Toyota and Stellantis. However, BYD has already surpassed BMW and Ford and is catching up to Mercedes-Benz and Ferrari. In terms of sales, Tesla sold around 230,000 more cars than BYD in 2023, but the gap has been narrowing in recent years. In the last quarter of 2023, BYD sold more battery electric vehicles (BEVs) globally than Tesla, although in early 2024, Tesla regained its position despite a drop in sales.
BYD’s competitive pricing has helped it rise to the top of the EV market, particularly compared to Tesla’s higher-priced cars. In response to this competition, BYD has launched new versions of its popular models and reduced prices to attract more customers. While Tesla has also reduced prices in China, its models still sell for more than double the prices of BYD’s cars. Both companies are facing increasing competition in the world’s largest car market, with the Chinese market being a key battleground for dominance.
China is Tesla’s largest market after the United States, accounting for 33% of global sales in 2023. However, BYD does not sell cars in the United States, focusing instead on its bus manufacturing plant in California. Both companies are expanding beyond their home markets and investing in factories abroad to meet the growing demand for EVs worldwide. In 2023, a total of 13.6 million EVs were sold globally, with the Chinese market experiencing significant growth. BYD sold about 3 million electric cars, including hybrids, in 2023, while Tesla delivered 1.8 million vehicles worldwide.
Overall, the EV market is growing rapidly, with sales expected to reach 10 million in China alone in 2024. BYD and Tesla are key players in this market, with both companies facing challenges and opportunities as they compete for market share. Despite Tesla’s current lead in market capitalization and global sales, BYD’s competitive pricing and focus on electric vehicles have positioned it as a strong contender in the EV market. As both companies continue to innovate and expand their presence globally, the competition between them is likely to remain fierce.