First, to set the mood:
A deep dive from Investor's Business Daily, May 1:
Tesla (TSLA) and BYD (BYDDF) are the world's largest electric-vehicle makers. Which one is No. 1 depends on your EV definition.
A lot of attention is focused on EV startups such as Nio (NIO), Li Auto (LI), Xpeng (XPEV), Rivian (RIVN) and Lucid (LCID). Efforts by traditional automakers such as General Motors (GM) and Ford Motor (F) also get coverage. However, Tesla and BYD stand apart.
In 2022, BYD vehicle sales raced far past Tesla's. Among all-battery electric vehicles, or BEVs, Tesla still leads.
Tesla announced big price cuts worldwide in January, and has kept doing so. Many other China EV makers have also cut prices in turn, including BYD.
Tesla earnings fell solidly in the first quarter, with gross margins plunging. BYD reported booming Q1 earnings growth vs. a year earlier, though profit and sales fell vs Q4.
Despite their similarities and size, Tesla and BYD historically haven't competed much directly. That's starting to change, with more BYD models vying for the same segments as Tesla. BYD unveiled several models at the Shanghai Auto Show, across a wide price scale.
Tesla stock had a terrible 2022, plunging sharply in December and to start 2023. But shares boomed from Jan. 6, when the latest China price cuts were announced. After consolidating, Tesla stock broke out on March 31, but tumbled back following deliveries. Shares have tumbled below key moving averages.
BYD stock is up solidly in an up-and-down year, recently clearing an aggressive entry.
Let's take a look at BYD vs. Tesla, as well as BYDDF stock vs. TSLA stock.
Tesla Vs. BYD: Does BYD Sell More EVs Than Tesla?
Tesla deliveries for the first quarter came in at a record 422,875, up 36% vs. a year earlier and 4% above Q4's 405,278. Big Tesla price cuts worldwide and new U.S. tax credits fueled demand.Wall Street had expected deliveries of 432,000, according to FactSet on Friday. Tesla sales have fallen short of views for several quarters. Deliveries did top some consensus forecasts.
'Production once again exceeded deliveries, at 440,808. Model S and X output was at 19,437.
The output-to-sales imbalance is a concern, with analysts worried about further Tesla price hikes to support deliveries.
BYD sales surged 209% to 1,863,494 in 2022. Of the personal vehicles — excluding big rigs, buses and heavy equipment — some 911,140 were BEV vehicles and 946,239 plug-in hybrid (PHEV) vehicles. BYD's hybrids offer at least 50 miles of battery range.
On April 2, BYD reported first-quarter sales were 552,076, up 93% vs. a year earlier but down 19% from Q4's record 683,440. Sales did pick up to 206,089 in March from February's 191,664 and January's 150,164.
Passenger sales — excluding big rigs, buses and heavy equipment — were 547,917 in Q1, with 264,647 BEVs and 283,270 plug-in hybrid vehicles (PHEVs).
Some of the Q1 decline vs. Q4 reflected some Covid impact to start the year, as well as Lunar New Year holidays in late January. But there's no doubt that the Tesla-led EV price war has taken a toll on BYD, especially vehicles such as the Han and Seal.
Tesla slashed its entry-level Model 3 price by about $7,280 over late October and early January, with several other EV makers including XPeng announcing major cuts as well.
BYD has offered more limited discounts, but has stepped up with sizeable incentives for the Seal. From April 7-30, customers can get up to 31,000 yuan ($4,510) in discounts off the Model 3 rival.
BYD's upscale Denza brand sold 10,398 D9 minivans in March.
Export sales hit 38,725 in the first quarter, providing an escape valve from a brutal home market.
BYD is not just the largest EV and NEV seller in China, it's the country's largest automaker, period.
BYD will release April sales figures in early May.
Tesla Price Cuts
Tesla has slashed prices worldwide multiple times in 2023, starting in January and continuing into April. The only exception is China, where Tesla cut prices significantly in late October before the early January cuts.U.S. price cuts have made most Model 3 and Y vehicles eligible for new U.S. tax credits of up to $7,500, subject to a variety of conditions. However, the IRS has released battery sourcing rules that reduced tax credits for the entry-level Model 3, which uses China-made LFP batteries, to $3,750.
The global price cuts sparked demand for Tesla Model 3 and Y vehicles, but the effect has quickly worn off, spurring further cuts.
In China, a slew of rivals have slashed prices, muting the impact of Tesla's discounts. BYD and rivals also will launch a bevy of new models in the next few months, many of which will target Tesla directly.
In late April, Tesla began offering some new modest discounts on some Model 3 and Y inventory vehicles in Europe....
....MUCH MORE
