Published on January 3rd, 2024 | by Sounder Rajen

Tesla Dethroned By BYD As Number 1 EV Manufacturer For 2023

These numbers mark the sales figures for both brands relative to the end of the year 2023

US car maker Tesla has lost its crown as the top electric vehicle (EV) maker to Chinese firm BYD, according to sales figures released Tuesday (2 January). The US-based EV manufacturer delivered 484,507 vehicles in the fourth quarter of 2023, said a company filing up more than 11 percent from the previous quarter.

Despite this increase in sales, it was not enough to keep the crown as the world’s top battery electric vehicle (BEV) producer and seller, as Chinese rival BYD reported sales on Monday of 526,409 for the same period.

Moreover, on top of besting Tesla in EV sales, BYD also sold more than 400,000 plug-in hybrid electric vehicles (PHEVs) in the fourth quarter. In total, it sold more than three million passenger vehicles last year. However, Tesla was still the top EV seller annually, delivering more than 1.8 million vehicles, more than BYD’s more modest number of under 1.6 million as of December 2023.

Susannah Streeter, head of money and markets at Hargreaves Lansdown even said that BYD’s deliveries show price cuts are working for the Chinese company. “The fight will hurt margins for both companies, but BYD clearly believes it’s a price worth paying to increase market share and recognition.” she added.

Gary Bradshaw, portfolio manager at Tesla shareholder Hodges Capital also noted that Tesla’s delivery numbers are “much, much, much better than domestic US car companies.” So clearly, all is not lost for Tesla anytime soon. Surprising but not entirely out of left field know the way Tesla’s CEO, Elon Musk, operates.

On top of that, smaller rival Rivian also reported deliveries on Tuesday, with the company missing market estimates amid a broader pullback in EV demand. The weakness has led US automakers including Ford and General Motors (GM) to become more cautious about their EV production plans, even scaling back production.

Tesla is also facing scrutiny from regulators over its self-driving technology with the company recalling more than 2 million vehicles last month to install new safeguards in its Autopilot advanced driver-assistance system, after a federal safety regulator cited safety concerns. Could the brand be on its last legs now?

Consumer Reports, an influential US non-profit group that conducts extensive reviews of cars, kitchen appliances and other goods, also said its preliminary evaluation suggests the software update to fix issues was not sufficient and did not go far enough to prevent misuse and driver inattention on Tesla models.