Tesla to Announce Q4 Earnings Soon
Expected to Surpass Pure Electric Vehicle Sales
China's largest electric vehicle manufacturer BYD set a new annual record for passenger car sales last year. Attention is focused on whether it can narrow the gap with Tesla, the number one electric vehicle seller, ahead of Tesla's Q4 earnings announcement this week.
According to Bloomberg on the 1st (local time), BYD sold a record total of 4.25 million units last year, combining pure electric vehicles (BEV) and plug-in hybrids (PHEV), excluding commercial vehicles. This represents an increase of about 41% compared to the previous year, marking the first time annual sales have surpassed 4 million units.
Bloomberg stated, "BYD's total sales are close to surpassing those of the U.S. automaker Ford and Japan's Honda," and "BYD's annual revenue is also expected to exceed $100 billion for the first time."
The strong domestic demand in China was cited as the main reason for this performance. Bloomberg evaluated, "BYD's growth is largely driven by domestic sales in China," adding, "Growth was accelerated in the second half of last year as subsidies were expanded to encourage drivers to replace gasoline vehicles." However, overseas sales remained around 410,000 units, falling short of the original target of 500,000 units, which Bloomberg attributed to additional tariffs imposed by the European Union (EU) on Chinese electric vehicles.
It will be a key point to watch whether BYD can narrow the electric vehicle sales gap with Tesla, which is set to announce its Q4 earnings on the 2nd (local time). BYD's annual pure electric vehicle sales last year were 1.76 million units, slightly below Tesla's guidance of 1.81 million units. Up to the third quarter of last year, BYD's pure electric vehicle sales were 1.16 million units, trailing Tesla by 124,100 units.
To meet its guidance, Tesla needs to sell more than 515,000 units in the fourth quarter. If achieved, Tesla would record its highest quarterly sales ever. Market forecasts are slightly lower at 510,400 units.
BYD's growth trend is expected to continue this year. Citi analysts recently reported that BYD plans to supply 5 to 6 million vehicles by 2025. This would put BYD on par with leading global automakers such as General Motors (GM) and Stellantis. However, Bloomberg suggested that BYD's sales might slow somewhat this year due to allegations of labor exploitation related to a new electric vehicle factory in Brazil, one of BYD's largest overseas markets.
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