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BYD Electric Cars and Tesla Go Head to Head in Final Quarter of 2023

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BYD, positioned as a world leader in the manufacturing of new energy vehicles, announced a record number of  3 million sales of battery-only and hybrid vehicles in total for the year. The record-breaking number,  marks the first quarter that its battery-only sales rivalled Tesla’s sales with 526, 000 sales in the final quarter of 2023.

According to reports, this comes as a remarkable milestone, as Tesla delivered a record 484,500 electric vehicles for three consecutive months in 2023 and 1.8 million for the year.

Remarkable Performance

Analysts are astounded by the performance, as both Tesla and BYD go head to head. Tesla’s ascension in the financial markets has been extraordinary. Despite initial scepticism, the company’s stock price witnessed astronomical growth.

Tesla’s deliveries for the final quarter of 2023, marked an increase of 20% in comparison with 2022. The company’s total deliveries for 2023 amounted to 1.8 million units which was an 37.7% increase in sales from last year.

Just Under Expected Target

Despite the marked growth, sales were still below Musk’s long-term growth target of growing deliveries that was set at 50% or more annually.

High interest rates and the uncertain economy has contributed significantly towards the drop in sales, however Tesla continues to benefit from other trends.

Musk’s Strategic Moves Bolstered Success

The company sold a refreshed version of its Model 3 in a few select markets, in addition to launching its newest Cybertruck in the U.S. The company also reduced its pricing on some of its vehicles over the last year and extended its efforts towards strategic advertising campaigns in the second half of 2023 which made a significant difference in the company’s overall performance for the year.

Reintroduction of Popular Model

Tesla also recently reintroduced the rear-wheel-drive version of its popular Model Y crossover-sized vehicle in the U.S. at a price of about $44,000. The Model 3 starting price is just under $39,000.

Three Year Stock Price Rise

TSLA stock prices have slightly increased sinse 2021 starting at $235, they have now reach $250. This is an increase of approximately 25% for the S&P 500 over the last 3-year period. Over all Tesla’s performance has been quite with respect to the index. Despite the market volatility over the past few years, Tesla’s market capitalization has soared, making it one of the world’s most valuable automakers.

BYD Becomes Leading Global Player

Along with BYD’s remarkable accomplishment for the 2023 sales year, the company was also listed among the global top 10 of car sales for the first time. The growth was beyond what as expected as they saw a surge of 61.9% in sales sinse the previous year.

It All Started with Batteries

BYD, originally rose to prominence through its manufacturing of rechargeable batteries that are used in smartphones, laptops and other electronics. The company first started selling its shares on the stock market in 2022 and diversified by purchasing a struggling state-owned care manufacturer, Qinchuan Automobile Company.

Since 2008 BYD has counted veteran US investor Warren Buffett’s Berkshire Hathaway as a shareholder. According to analysts, the company owes its growth to batteries – which are the most expensive parts of an EV and making them in-house has been advantageous.

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