Dive Brief:
- China-based automaker BYD overtook Tesla as the world’s biggest electric vehicle seller in the fourth quarter of 2023, according to the company’s December production and sales report.
- Tesla remained in the top spot of EV sales for the full-year, however, selling a record-setting 1.8 million EVs in 2023, a 38% year-over-year increase.
- Meanwhile, BYD sold less than 1.6 million EVs last year. In total, the automaker sold over 3 million vehicles in 2023, including 1.4 million plug-in hybrid models.
Dive Insight:
Tesla is facing growing competition in the U.S., China and other major markets heading into the new year.
The automaker’s profits declined in 2023 after the company lowered its U.S. prices about 25% to gain market share. It’s also dealing with an EV price war in China. During its earnings call in October, Tesla reported its Q3 profits declined 44% YoY to less than $1.9 billion.
Although the company fell short of its initial production target of 2 million units, Tesla successfully ramped up its EV manufacturing, producing nearly 1.9 million vehicles in 2023, a 35% YoY increase. In October, Tesla CEO Elon Musk said factory shutdowns for upgrades last summer led to lower yearly production numbers.
Tesla’s big jump in vehicle production and deliveries comes as rivals General Motors and Ford Motor Co. both have significantly scaled back their EV plans for 2024. In October, GM announced it was abandoning its plan to build 400,000 electric vehicles from 2022 through mid-2024 to maximize profitability. The company blamed lower EV demand for its decision to curb its EV production goals.
In November, Ford said it would scale back production of its EV factory in Marshall, Michigan to ensure it could operate the plant economically. The automaker also cited lower than expected EV sales for its decision.
Rivian, meanwhile, said on Tuesday it delivered 13,972 vehicles in Q4, missing analysts’ expectations. In the fourth quarter, the company delivered about 10% fewer vehicles than the 15,564 vehicles it delivered in Q3. The electric automaker sold 50,122 units in 2023, falling short of its earlier target of 52,000 deliveries in 2023.
Tesla will report its fourth-quarter financial results after the market closes on Jan. 24.
