Tesla surpassed Chinese manufacturer in electric vehicle sales

Tesla Inc., the automotive company led byElon Musk, was surpassed by Chinese manufacturer BYD Co. in global sales of electric vehicles (EV).

Despite recording an increase in deliveries, Tesla failed to maintain its dominant position in the market. Although Tesla exceeded its annual goal of delivering 1.8 million vehicles, the company fell far short of the expectations Musk had projected a year ago.

During the last quarter, Tesla delivered 484,507 vehicles, exceeding analyst expectations of around 483,173 deliveries, according toInfobae.

However, BYD emerged as the new leader in EVs, selling a total of 526,409 electric vehicles in the same period. This achievement was boosted by the wide range of more affordable models offered in China.

Despite the policy of price cuts, Tesla failed to stimulate enough demand to sustain a production of 2 million cars, as had been predicted.

This setback was reflected in the stock market, with Tesla shares falling as much as 1.6% following the news. Even though it achieved 102% growth the previous year, recovering from losses linked to Musk's acquisition of Twitter, the recent situation shows some volatility.

Tesla's range expansion late last year included the long-awaited launch of the Cybertruck, although no specific figures were provided on its production and delivery until the end of the year. Musk warned of the Cybertruck's production and technology challenges, projecting a time of 12 to 18 months to reach positive cash flow.

Although Tesla generates higher revenue and profits than BYD due to the sale of higher-priced vehicles, its reliance on just two models for the bulk of its sales could be impacting its market position, especially with competition expanding rapidly.

China and the United States remain Tesla's top markets, although competition in the electric vehicle sector continues to intensify, and diversification strategies could be essential to staying on top of the ever-evolving industry.