In Q4 2023, Chinese firm BYD surpassed Tesla in electric vehicle (EV) sales, selling 526,000 battery-only vehicles, marking the first quarter where BYD outpaced Tesla in this category. 

Tesla reported a record 484,500 EV deliveries in the same period, contributing to a total of 1.8 million vehicles for the year but fell short of Elon Musk’s 2 million delivery projection for 2023. Tesla faced challenges with rising borrowing costs, resulting in a demand slowdown, and implemented price cuts to attract buyers. 

BYD’s success is attributed to strategic entry into the EV industry, leveraging expertise in rechargeable battery manufacturing since 1995. 

BYD’s in-house battery production provides cost advantages over competitors, allowing significant price reductions and a 70% sales surge in December. This milestone underscores the intensifying competition in the EV market, posing challenges for Tesla to regain its leading position amid BYD’s accelerated growth.