Chinese electric-vehicle manufacturer BYD had a remarkable month as its production of electric vehicles (EVs) exceeded Tesla’s quarterly production for the first time. Nevertheless, Tesla’s recent delivery results also contain positive news.
In September, BYD produced around 280,000 “new energy vehicles,” a significant increase from about 205,000 produced the previous year. The term “new energy vehicle” is used by China to encompass both plug-in hybrids and all-battery electric vehicles (BEVs). Notably, Tesla exclusively manufactures BEVs.
Specifically focusing on BEVs, BYD produced approximately 144,000 units in September, an impressive 81% increase compared to the previous year. For the entire quarter, BYD’s BEV production reached about 440,000 units, a substantial 67% year-over-year growth. BYD currently stands as the leading manufacturer and seller of BEVs in China.
However, Tesla remains the largest supplier of BEVs worldwide. During the third quarter, Elon Musk’s company manufactured 430,488 BEVs, marking an 18% increase compared to the previous year. Tesla’s deliveries were somewhat limited due to temporary shutdowns for plant upgrades. In its second-quarter earnings conference call held in July, Tesla had announced scheduled production breaks for these necessary improvements. In the second quarter, Tesla produced 479,700 units.
Over the last twelve months, Tesla has maintained an edge, producing approximately 1.8 million BEVs, while BYD has manufactured around 1.4 million units.
Tesla’s Delivery Performance
Tesla has once again asserted its dominance in the electric vehicle (EV) industry by delivering an impressive 435,059 units in the third quarter. This achievement firmly places Tesla at the forefront of the market. However, it is worth noting that BYD, a leading electric vehicle manufacturer, delivered 431,603 units during the same period, coming in just 3,456 units shy of Tesla’s record.
Over the past year, Tesla has managed to deliver approximately 1.7 million battery electric vehicles (BEVs), showcasing the company’s remarkable growth and unwavering popularity. In comparison, BYD has delivered about 1.3 million BEVs, highlighting its strong presence in the industry as well.
Although Tesla’s delivery numbers were slightly lower than expected, the company remains optimistic about its future prospects. In a recent news release, Tesla announced that it plans to ship a total of 1.8 million units in 2023, with an estimated 475,000 units to be produced and sold in the fourth quarter alone. This ambitious target suggests that Tesla is determined to regain its quarterly BEV production crown and further solidify its position as an industry leader.
As for BYD, one positive takeaway from its impressive delivery figures is the sustained demand for EVs in China. As the world’s largest market for BEVs, China accounts for approximately 33% of global sales volume. This indicates that EVs continue to gain popularity and consumer acceptance in China, which bodes well for Tesla and other manufacturers operating in this lucrative market.
Despite missing the Wall Street consensus of approximately 455,000 units for the third quarter, Tesla’s stock price remains relatively stable, even showing a slight increase of 0.1% to $250.58. It is noteworthy that Tesla’s stock had experienced a decline of approximately 14% leading up to the delivery report due to concerns regarding lower production levels mentioned during the July conference call.
On the other hand, BYD’s U.S.-listed American depositary receipts experienced a 0.8% decrease in Monday’s trading session. In the broader market, the S&P 500 declined by 0.4%, while the Nasdaq Composite saw a modest increase of 0.2%.
Additionally, it is worth mentioning that BYD’s Hong Kong-listed stock witnessed a 3% rise on Friday, albeit with the Hong Kong market closed on Monday due to a public holiday.
Overall, Tesla’s remarkable performance in deliveries, combined with the strong EV demand in China, sets a promising outlook for the company’s continued growth and success in the electric vehicle industry.