One of these 2 car companies will dominate the future. Choose carefully.

Okay, maybe there are a few more candidates. But there are only two candidates currently vying for the top spot. Coincidentally, my favorites. The world-famous Tesla $TSLA+3.0% and the aggressively expanding, predatory BYD.

Tesla or BYD?

The basic numbers

Tesla reported that it delivered 254,695 vehicles in Q2, slightly below expectations. The Shanghai Giga's production shortfall is to blame. It was almost 18% less than the record Q1 (310,000) but 26.5% more than Q2 2021.

Number of cars delivered by Tesla (in thousands). Source: Statista.com

BYD sold 355,021 vehicles in Q2, up 256% from a year ago and 24% from 286,329 in Q1. Fewer than 3,000 vehicles were exported, although overseas sales are expected to grow. Now that's what I call a surge!

Tesla and BYD sales numbers. And Volkswagen for comparison. Source.

So BYD has not only overtaken Tesla, it has overtaken the US giant by just over 100,000 cars to take the EV crown. It should be noted, however, that BYD's numbers are high because they count NOT fully electric cars. Of course, Tesla still leads in the number of fully electric vehicles, but BYD has also retracted its loss here. It sold over 180k of them in Q2.

But there are minor concerns about lockdowns again. The CEO says that production capacity exceeds 200k units per month and that he has a backlog of over 700k units.

BYD's deliveries in the third quarter should easily exceed 500k EVs and hybrids, with fully electric vehicles expected to be around 250k or more. Incredible numbers.

Analysts and their estimates claim that BYD's sales of pure electric vehicles will exceed 1 million units in 2024, making it the world's third-largest electric vehicle manufacturer after Volkswagen and Tesla. Numbers maybe, but would I consider Volkswagen the world's number two? Not really...

By all accounts, Tesla's biggest drawback in China is its small supply. Only Model 3 and Model Y . Local competitors like BYD (NIO, Xpeng...) are quickly launching new models at more competitive prices than Tesla.

https://www.youtube.com/watch?v=BUhAKO6Tudg

Well what can I tell you... Looks like Warren Buffett hit it pretty good with BYD 🤷On the other hand, now Warren has sold off BYD. It would seem he knows something we don't. But that's not the case at all.

After weeks of speculation, it has emerged that Warren Buffett's Berkshire Hathaway has sold some of its shares in Chinese electric car maker BYD. Surprisingly, the sale is welcome news for BYD investors .

Berkshire sold less than 1% of its stake in BYD. Berkshire still holds about 219 million shares, which represents about 20% of the company's outstanding shares.

The value of Berkshire's stake exceeds $7 billion, with the sale raising approximately $60 million. This is a negligible amount for Berkshire, which has a market capitalization of over USD 630 billion and ended the second quarter with cash of approximately USD 472 billion.

BYD investors may be relieved. Shares plunged nearly 12% on July 12 after a BYD stake the size of Berkshire's went into the Hong Kong stock exchange's central clearing and settlement system, leading to fears that Buffett was selling the company outright.

BYD data. Source
Tesla data. Source

Battlefield

On what battlefield do these two actually meet? Tesla is a global giant. It sells mainly in North America, Europe and China. It also has a significant presence in Korea and some other Asian markets. It has four plants: Fremont, California, Shanghai, joined by plants in Austin, Texas, and Berlin.

https://www.youtube.com/watch?v=OQcQcy-jScM

As the Berlin plant ramps up, the Shanghai plant will export far fewer Model Y cars to Europe, although Model 3 deliveries are likely to continue.Tesla'scapacityis growing rapidly. But it has no major new markets to enter in the near term, and no new cars to build.

BYD has plants in China and makes virtually all of its sales there. BYD easily beats Tesla in local sales in China, even for electric cars. The China-focused automotive giant is poised to become truly global. Even if it only exports sub-thousands of cars.

BYD has started deliveries of some Atto 3 cars to New Zealand and Australia. In most overseas markets, the Atto 3 is called the Yuan Plus. Several other Asian countries will follow in the coming weeks and months, along with deliveries in most of Europe in the fourth quarter. BYD will sell the Tang SUV in Norway from the end of 2021.

https://www.youtube.com/watch?v=UvzRfUGAB_s

There are reports that BYD is considering building car plants in India and Europe. America is not officially on BYD's radar when it comes to passenger EVs. Tariffs on Chinese-made cars make exports to the US cost-prohibitive. BYD makes some electric buses here, and has plenty of additional space at its plant in Lancaster, California, near Los Angeles.

What next?

It's also important to note that neither company is purely focused on cars. Tesla, of course, draws heavily on its infrastructure, Elon Musk's solar charging efforts, its autopilot, etc.

BYD makes its own chips, which has helped it grow rapidly in the past year while the industry has had to stop production. The company is also in the solar energy and energy storage business.

BYD makes its own batteries and chips, as well as many other key parts. It sells its batteries to other car manufacturers. And that includes Tesla. Musk has long touted the goal of a cheap $25,000 Tesla. BYD already sells many electric cars priced at $25,000 or less, and does so profitably. Musk is considering getting involved in lithium mining. BYD is already mining.

BYD's EV sales have outpaced Tesla's. On the other hand, Tesla is so far selling far more pure electric vehicles than BYD... though the gap is narrowing. But Tesla can also sell its cars at significantly higher prices. Both companies are showing increasing profits. BYD is expanding into several major markets in the coming weeks and months. Both electric car giants are shipping far more vehicles than their competitors, and growth prospects are strong.

What about you, which camp do you fall into? I'm still Team Tesla, but I'd probably strongly consider BYD.

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Disclaimer: This is in no way an investment recommendation. This is purely my summary and analysis based on data from the internet and a few other analyses. Investing in the financial markets is risky and everyone should invest based on their own decisions. I am just an amateur sharing my opinions.

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a good choice

Analysts and their estimates claim that BYD's sales of pure electric vehicles will exceed 1 million units in 2024, making it the world's third-largest electric vehicle manufacturer after Volkswagen and Tesla. Numbers maybe, but would I consider Volkswagen the world's number two? Not really...

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