Competition Between BYD and Tesla in the Electric Vehicle Market.

Competition Between BYD and Tesla in the Electric Vehicle Market

China’s leading electric vehicle manufacturer BYD is in tight competition with Tesla according to recent data. In the second quarter, BYD achieved a total of 426,039 electric vehicle sales, representing a 21% increase. These numbers show that BYD is only 12,000 units behind Tesla’s estimated delivery of 438,000 vehicles during the same period.

Tesla’s latest quarterly report indicated a 5% decrease in deliveries, with the company producing 410,831 vehicles and delivering 443,956 units. The production decrease exceeds 20,000 units compared to the first quarter. Analysts had anticipated a more significant decline, making these figures a positive outcome for Tesla.

• Role of China: Behind BYD’s strength against Tesla is China’s affordable electric vehicles. BYD’s vehicles stand out for being more cost-effective compared to Tesla. In particular, the Seagull model has made a difference in the market by being offered for just $10,000.
• Tax Policies: The US and EU impose high tax policies to restrict the entry of Chinese-origin vehicles into their markets. However, this contradicts the free trade principle that the US has advocated for years. If high taxes persist, US-based tech giants may also face challenges in the Chinese market, potentially fueling global trade wars.