Two companies have been competing to become the biggest electric vehicle (EV) maker. Tesla has long been the leader in making cars with zero emissions. However, a new player, China’s BYD, surpassed Tesla in sales during the last quarter of 2023. This shift in leadership is not the most critical aspect right now. It is essential to note that BYD’s success in sales is primarily due to its strong position in its home market, China, which has become the largest market for new cars and has high levels of EV usage.

During the final three months of 2023, BYD sold 526,409 electric vehicles, while Tesla sold 484,507 EVs. Despite this, Tesla remains the top electric car seller for the year, selling 1.8 million vehicles compared to BYD’s 1.6 million. The EV industry continues to grow, with sales increasing rapidly worldwide, although electric cars still make up only a small fraction of new car deliveries. Both Tesla and BYD are expanding their production capacities in various countries like Germany, Mexico, Hungary, Brazil, and Thailand. While Tesla faces some challenges in China regarding sensitive areas and possible supply chain risks, the bigger concern for both companies is technological advancement. China’s electric vehicle industry, including battery manufacturers like CATL and carmakers like Nio, is showing significant progress in technology. Tesla is encountering issues with a new battery coating process for its Cybertruck, highlighting the importance of staying ahead in the technology race. The competition between Tesla and BYD reflects the ongoing growth and competition in the electric vehicle industry, emphasizing the need for innovation and development in this rapidly expanding market.