Lyra Martin Tech 07.05.2022 08:Jul AM EDT

Tesla Now Only the Second Leading Manufacturer of EVs Worldwide, Chinese Rival Goes First

Tesla to Lay Off Hundreds of Autopilot Employees as it Shuts Down San Mateo Office — People charge their Tesla vehicles at a charging station inside a mall in Shanghai on October 23, 2017.
Photo : CHANDAN KHANNA / Getty Images

Tesla is now the second-largest electric vehicle producer due to Shenzhen-based rival BYD passing it to take the top spot in the industry.

Reports say Tesla only sold 564,000 cars in 2022's first half, whereas BYD's sales increased 300 percent to 641,000 vehicles.

Tesla is Now the Second-Largest Electric Car Maker Behind BYD

As a result of Chinese rival BYD overtaking Tesla to claim the top rank in the production of electric vehicles, Tesla is now the second-largest manufacturer of such vehicles.

According to a report from Nikkei Asia, Tesla was able to sell 564,000 cars in the first half of 2022. BYD, situated in Shenzhen, had a 300 percent increase in sales, reaching 641,000 automobiles. Given that it was outside Tesla's and Musk's control, it is unlikely they will be very disappointed that they are no longer in the lead.

By comparison, Tesla delivered 564,000 electric vehicles in the year's first half. In the second quarter, Tesla had 254,695 EVs, a drop of 18% compared with first-quarter deliveries of 310,048. But June was the highest vehicle production month in Tesla's history, according to the company.

BYD's Hong Kong-traded shares have gained more than 17% in the year to date. The stock was down and closed down 0.70% on Tuesday (June 28).

Whether Tesla can regain the number one position remains unclear, but the company did sell 936,172 vehicles in 2021. BYD, partly owned by Warren Buffet's Berkshire Hathaway, also counts as the world's second-biggest producer of EV batteries, having overtaken LG. Owning factories unlikely to be impacted by lockdowns with access to an ample supply of batteries is a potent combination.

The challenges Tesla is now experiencing are significant. It just raised pricing for all of its models, an investigation into Autopilot crashes is ongoing, and the firm is being sued for breaking federal law, according to recent comments made by Elon Musk. Tesla also recently hiked prices for all of its models.

Electric Car Sales Surged in May, Propelling BYD into China's Top Manufacturers

Sales of BYD's electric vehicles more than doubled in May, securing the company's ascent into China's top three automakers.

That is supported by information from the China Passenger Car Association that was made public on Friday (July 1). The largest vehicle market in the world is China.

A significant electric car brand in China, BYD is also a battery manufacturer and is supported by Warren Buffett's Berkshire Hathaway. Some of its models are competing with Tesla for market share.

In addition to maintaining its lead in new energy vehicles, such as hybrid and battery-powered automobiles, BYD has ascended this year into the top three brands in China by passenger car sales.

The report indicated that BYD sold 113,768 new energy passenger cars last month despite Covid lockdowns that negatively impacted supply chains and customer mood in China.

According to association statistics, BYD was responsible for two of the top three selling new energy vehicles in China last month, SUVs and smaller passenger cars. Tesla, Nio, and Xpeng were not selected.

Tesla missed the top three slots in the U.S. market for passenger cars. According to Sino Auto Insights, Toyota leads the industry in terms of sales, followed by Ford and the Chevrolet brand of General Motors.