BYD Sold 644,764 New Energy Vehicles in First Half of This Year
Over 300% Growth Compared to Same Period Last Year
Tesla's Estimated First Half Sales at 564,743 Units
[Asia Economy Reporter Kang Woo-seok] Chinese electric vehicle manufacturer BYD (比亞迪·BYD) surpassed Tesla in the first half of this year to become the world's top seller of new energy vehicles (electric vehicles, hybrid vehicles, hydrogen vehicles). Analysts attribute BYD's success to its advantageous production capacity and price competitiveness.
On the 18th, BYD announced in its earnings report that it sold 644,764 new energy vehicles in the first half of this year, marking a growth of over 300% compared to the same period last year.
Meanwhile, global electric vehicle maker Tesla suffered setbacks such as factory shutdowns due to the lockdown in Shanghai, China. According to major foreign media, Tesla sold 254,695 units in the second quarter of this year, a 17.9% decrease compared to the previous quarter (310,048 units).
Customers visiting the BYD store in Beijing, China, are examining cars. [Image source=AP Yonhap News]
Reports estimate Tesla's sales for the first half of this year at 564,743 units, about 80,000 units fewer than BYD's new energy vehicle sales. Tesla is scheduled to announce its second-quarter earnings on the 20th (local time).
The UK Financial Times (FT) recently published a feature article titled "How BYD Caught Up with Tesla," analyzing that "Tesla was impacted by the two-month closure of its Shanghai factory due to COVID-19, but BYD was less affected as it operates a factory in Shenzhen, China, and is capable of producing its own batteries."
BYD started as a battery company in 1995 and later expanded into electric buses, monorails, and passenger cars. Additionally, BYD operates electric bus factories in the United States, Hungary, and Brazil, and supplies batteries to domestic companies, thereby increasing its influence not only in China but also in the global market.
One of BYD's competitive advantages is its relatively affordable pricing. In April, BYD unveiled its premium sedan model "Han," priced starting at 229,800 yuan (approximately 44.8 million KRW).
In comparison, Tesla's Model 3 rear-wheel drive (RWD) model is priced at 70.34 million KRW, and the Performance model at 94.17 million KRW. Notably, the Long Range model's price was raised from 83.52 million KRW to 84.69 million KRW on the 15th.
The Model Y Long Range model (94.86 million KRW → 96.64 million KRW) and Performance model (101.96 million KRW → 104.73 million KRW) also saw price increases.
Meanwhile, BYD is also known as the only electric vehicle company in which "investment genius" Warren Buffett has invested. Buffett purchased $230 million (approximately 300 billion KRW) worth of BYD shares in 2008.
As a result, BYD's stock price is sometimes influenced by "Buffett's impact." On the 13th, BYD's stock price plunged after news emerged that Western Capital Group (which owns 100% of Berkshire Hathaway Energy), owned by Warren Buffett, was planning to sell or transfer BYD shares. Rumors that Buffett's 225 million shares were up for sale affected investor sentiment. Western Capital Group is BYD's fourth-largest shareholder, holding 7.7% of shares.
In response to the surge of interest, BYD denied the rumors, stating, "There is no information regarding a reduction in shareholding, but major shareholders must disclose any changes in their holdings."
Buffett has not invested in Tesla. In response, Tesla CEO Elon Musk sarcastically remarked in October last year, "Maybe he should invest in Tesla."
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