Warren Buffett-Backed BYD Closing in on Tesla EV Sales

Tesla’s third-quarter delivery numbers have fallen short of expectations, creating an opportunity for its closest competitor, BYD, to potentially take the lead in the electric vehicle market. Backed by Warren Buffett’s Berkshire Hathaway, BYD is a formidable player in the industry.

In the last quarter, Tesla sold 435,000 electric vehicles, while BYD reported sales of 431,000 battery-powered cars. This narrow gap of just over 3,000 units indicates that BYD is on the verge of overtaking Tesla in battery electric vehicle sales—a significant achievement considering that Tesla’s CEO Elon Musk once dismissed BYD as insignificant over a decade ago.

Tesla experienced a 6.7% decline in sales compared to the previous quarter, marking its first quarterly drop since early 2020. The company is currently facing weak demand, which has led to aggressive price competition in both the Chinese and American markets.

On the other hand, BYD has made significant progress within China’s electric vehicle sector by offering more affordable options, successfully displacing Volkswagen as the leading car brand in the country in terms of sales.

Tesla shares saw a decline of 2.11% toward the end of trading on Tuesday.