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BYD (BYDDF), a Chinese automaker, has surpassed Tesla (TSLA) as the world’s leading electric vehicle (EV) manufacturer, having sold a remarkable 526,000 battery-only vehicles in the final quarter of 2023. This achievement was bolstered by a substantial 70% surge in sales during December, fueled by a competitive price war in the market.

Tesla, in contrast, reported sales of 484,507 vehicles in the same quarter, relinquishing its top spot to BYD. Despite Tesla’s record-breaking sales and surpassing expectations in Q4, the intensifying competition, particularly from the aggressive pricing strategies of its Chinese counterpart, led to this shift in leadership.

BYD’s ascendancy underscores the increasingly competitive nature of the global EV market, posing a significant challenge for Tesla to regain its preeminence. Previously hailed as “the biggest brand we’ve never heard of,” BYD’s prominence in China has grown, marking it as a noteworthy contender in the expanding global EV market.

Tesla faced challenges in China even before the recent price war, with increased competition impacting its popular models. BYD’s bold pricing campaign further intensified the rivalry, resulting in a margin squeeze for both companies. However, BYD appears willing to endure reduced margins to gain market share and enhance brand recognition.

What Stock Exchanges To Buy BYD On?

BYD shares are available on the New York Stock Exchange Ticker BYDDF but with relatively very small volume compared to Hong Kong and Shenzhen Stock Exchanges. BYD Hong Kong Exchange Ticker: 1211.HK at 7 million shares average daily volume. BYD Shenzhen Exchange Ticker: 002594.SZ at 10 million shares average daily volume.

This development highlights China’s growing influence in the EV industry, supported by robust battery supply chains. BYD’s ability to offer steep discounts is attributed to its in-house battery manufacturing, which is more cost-effective than Tesla’s reliance on multiple suppliers. Tesla’s concerns about lithium shortages in its supply chain contrast with BYD’s proactive approach, securing resources through investments in Chinese lithium production, potential mine acquisitions in Africa, and exploration of assets in South America.

While BYD faces challenges entering the European market, the European Commission has initiated an anti-subsidy investigation into Chinese EV imports, expressing concerns about unfair competition. Possible duties on Chinese-made EVs may be imposed to safeguard European manufacturers from the effects of low-priced imports.

Elon Musk, recognizing the competitiveness of Chinese automakers, is likely strategizing to outperform them in other markets. Tesla’s shares have faced lackluster performance amid concerns about profitability and the rapid progress of rivals. Nevertheless, Tesla’s superior product and potential for cost reduction with increased production suggest a positive outlook, prompting Musk to counteract the competition.

As Chinese manufacturers aim to penetrate European markets, challenges persist in the UK, where concerns about inadequate charging infrastructure may deter motorists from transitioning to electric models. Recent industry data reveals a shortfall in the target for rapid or ultra-rapid chargers at motorway service stations, with only one in four meeting criteria by the end of 2023. Despite an increase in public charge points nationwide, addressing concerns about waiting times for charging points in popular locations remains a priority.

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