From Quiver Quantitative:

Tesla delivered nearly 495,000 electric vehicles in 2023, but it was surpassed by China’s BYD, which delivered over 526,000 in the fourth quarter alone. BYD’s annual total of 3.02 million deliveries, including hybrid EVs, outpaced Tesla. The shift to more affordable EV options in the face of high interest rates favored BYD, prompting Tesla to introduce incentives to boost sales. Other U.S. automakers, such as Ford and GM, exercised caution as Rivian reported lower-than-expected deliveries, reflecting broader EV demand. Tesla also faced regulatory scrutiny over its Autopilot system recall and the expiry of federal tax credits for some models.

Despite a record high production in Q4, Tesla lost its leading EV manufacturer position to China’s BYD, which delivered over 526,000 vehicles, surpassing Tesla’s annual total of 1.85 million. BYD’s strategy of price cuts and the influence of Warren Buffett fueled its dominance. Tesla, in response, introduced new incentives to maintain sales. Amid broader economic downturn, Tesla faces challenges with customer demand and regulatory scrutiny, such as Autopilot system recall and the expiry of federal tax credits for some models. Other U.S. automakers exercise caution in EV production plans amidst demand slowdown.



Read more: Tesla Sets Quarterly Record but Loses Top EV Spot to BYD in 2023