This is not news for our loyal and long-suffering readers.*
From Bloomberg via Yahoo Finance, October 30:
BYD Co. notched up another win over Tesla Inc. on Wednesday, reporting quarterly revenue that beat Elon Musk’s carmaker for the first time since the pair have gone head-to-head in global electric vehicles sales.
Revenue for China’s best-selling automaker soared 24% year-on-year to 201.1 billion yuan ($28.2 billion) for the three months ending Sept. 30, falling short of estimates, but exceeding Tesla whose sales hit $25.2 billion in the same period.
Net income increased 11.5% to an all-time high of 11.6 billion yuan, surpassing consensus, after BYD sold an unprecedented 1.12 million electric and plug-in hybrid vehicles last quarter. It generated a gross margin of 21.9%. Its profit however is still overshadowed by the $2.2 billion Tesla earned.
In the first nine months, BYD had net income of 25.2 billion yuan on revenue of 502.3 billion yuan.
BYD and Tesla have emerged as breakout threats to legacy automakers, particularly as Volkswagen AG, Ford Motor Co., Stellantis NV, and General Motors Co. struggle along the path to profitability with their EV transitions. As consumer demand for electric cars wanes, BYD has been insulated more than Tesla considering its strong line up of hybrid vehicles.
Hybrid vehicles are a major contributor to the revenue surge at Shenzhen-based BYD, with some models’ upgraded powertrains allowing for more than 2,000 kilometers range. Another key part of BYD’s edge is its vertically integrated supply chain, and making more parts in-house gives it a cost and scale advantage to produce cars cheaper....
Two posts from February 2024 pointed out what was coming:
Rystad: "China’s EV Growth Set To Explode in 2024"
Watch out Elon. Hybrids and plug-in electric hybrids seem to be where the consumer is at vs. battery electric vehicles. At least for the moment.
Mr. Musk, who seems to have some insight into the industry, says there will be 10 surviving manufacturers, 9 of them Chinese.*
