According to the 2023 sales results of BYD and Tesla, BYD retained the crown of the world's top EV seller, with 3.02 million cars sold, exceeding its US competitor by nearly 1.22 million units. The gap between the two widened compared to 2022.
Tesla had long reported the most battery EV sales until the fourth quarter of 2023. For the first time, the EV giant, which delivered 484,500 cars, fell behind BYD, which sold 526,400 units.
Tesla delivered 1.809 million BEVs throughout the year, still higher than BYD's 1.575 million cars. However, if BYD can broaden the total sales gap with Tesla in 2024 and increase the proportion of BEV sales, it will consolidate its leading position in the global EV market. BEV accounted for 52% of BYD's sales in 2023.
Based on Tesla's production capacity, the company is estimated to reach 2.2 million units in EV sales this year, up 22% from 2023. The industry projected that BYD will sell 3.8 million to 4 million EVs in 2024, seeing a year-over-year growth between 26% and 32%.
If both companies meet the estimates this year, BYD will sell 1.6 million to 1.8 million more EVs than Tesla, compared to a gap of 1.216 million units in 2023.
Significant product portfolio secures BYD's EV dominance in 2024
BYD will continue to dominate the global EV market. One reason is that the carmaker has a large product portfolio and keeps rolling out new models. BYD targets the general public with its dynasty and ocean series. It has also launched Denza, Yangwang and Fangchengbao for premium customers.
BYD EVs have a wide price range from CNY73,800 (US$10,400) to over CNY1 million. The diverse product mix helps the company gain a higher market share. The proportion in 2023 was 35% globally.
In contrast, Tesla has a simple portfolio and focuses on producing top-selling Model 3 and Model Y. The company's vehicles also have mid-to-high-level price tags. The situation caused Tesla's smaller customer base and lower sales volume than BYD.
Model 3 and Model Y comprised 96.2% of Tesla's 2023 sales. Model X, Model S and the newly-launched Cybertruck occupied 3.8% of the sales in total. Based on Tesla's planned production capacity in 2024, Model 3 and Model Y are estimated to account for 90.4% of the sales, while other models will take up 9.6%.
When dividing Tesla's automotive revenues by sales volume in 2023, one would learn that a Tesla EV is priced at about US$44,700 on average, while a BYD EV costs about US$24,000. Tesla's average model price is 86% higher than BYD's.
BYD accelerates overseas expansion to double sales in 2024
BYD's overseas sales have grown rapidly since announcing the start of exporting passenger EVs in May 2021. The automaker sold 13,700 cars outside China in 2021, raising the number to 242,800 units in 2023. It is expected to reach 600,000 cars this year.
After an expansion of over two years, BYD has deployed its passenger EVs in more than 400 cities worldwide and become the top seller in Brazil, Singapore and Columbia. The company plans to build EV production sites in Thailand, Vietnam, Hungary and other countries to scale in Southeast Asia, Europe and other markets.
Tesla began developing overseas markets earlier than BYD. The company operates Gigafactories in China and Germany. Revenues generated outside the US take up over 50% of Tesla's overall revenue. As BYD boasts a better price-performance ratio, the company's sales in some foreign markets are expected to surpass Tesla.
