Today: Apr 16, 2024

BYD Rocks! China’s EV Startups Break Records, Challenging Tesla Dominance.

4 months ago

BYD, the Chinese electric vehicle (EV) maker backed by Warren Buffett, reported a record-breaking quarter of battery EV deliveries, with 526,409 units sold in Q4 2023. This puts BYD on track to potentially overtake Tesla as the global EV leader if Tesla’s Q4 numbers confirm expectations. Other Chinese EV startups, including Nio, XPeng, and Li Auto, also reported strong month-over-month and year-on-year growth in December sales.

The strong performance by Chinese EV startups comes despite fundamental and macroeconomic challenges faced throughout 2023. The Chinese economy’s lackluster growth has been exacerbated by the property market bubble and the ongoing trade war with the US. In addition, price wars in the domestic market intensified after Tesla aggressively cut prices to boost sales volumes.

Despite these challenges, Nio managed to secure financing from private investors and XPeng secured a deal with German automaker Volkswagen. The shares of Chinese automakers have been trading off their highs, but XPeng, Li Auto, and BYD ended the year on a positive note.+

Looking ahead, Nio plans to start deliveries of its ET9 electric executive flagship in Q1 2025, while XPeng recently announced the launch of its X9 multi-purpose EV. BYD and Tesla are expected to confirm their Q4 delivery figures soon, providing further insight into their market positions.