BYD displaces electric car pioneer Tesla from the throne. But is the Chinese competitor also the better choice for investors?
• Intense competition in the electric car market
• BYD uncatchable ahead of Tesla in sales
• Tesla wants to transform
There is tough competition in the electric car market. In the middle: the Electric car-Giants Tesla and BYD. But what should investors pay attention to?
Two giants, two strategies
The two companies pursue very different approaches. Tesla is committed to transformation and wants to develop from a pure car manufacturer into a fully integrated technology company specializing in autonomous driving, artificial intelligence and software.
It is also positive to note that Tesla has an extensive charging network and, thanks to its pioneering work, is the best-known electric vehicle brand in the world.
BYD overtakes Tesla in global market sales
Nevertheless, the Chinese competitor BYD is now on the verge of rapidly overtaking Tesla in terms of annual sales figures: While BYD, according to “AFP”, had already sold around 2.07 million electric vehicles by the end of November, Tesla only had 1.22 million sales at the end of the third quarter – a lead that the US competitor can hardly catch up with. According to AFP, analysts expect Tesla to have around 1.65 million sales for the full year 2025, which is well below BYD’s level. The final sales figures for both companies are expected in the next few weeks.
However, BYD is concerned that sales in its important home market of China are seriously weakening. Sales figures in the People’s Republic have been declining for three months in a row. The reasons lie in more intense price competition, government funding cuts and growing competition.
Nevertheless, BYD scores with a decisive competitive advantage: the company controls its entire battery and semiconductor supply chain. This vertical integration allows BYD to produce electric cars at lower prices than competitors. BYD is also expanding rapidly on almost all continents.
Which stock is the better buy now?
Both companies face increasing competition. While Tesla is focusing on transformation in view of this, BYD impresses with global growth dynamics and lower execution risk. For investors who want to bet on the global e-car boom, BYD currently offers a more convincing buying opportunity, according to Catie Hogan from “The Mootly Fool”.
Editorial team finanzen.net
By the way: Tesla and other US stocks can even be traded on finanzen.net ZERO until 11 p.m. (without order fees, plus spreads). Open a depot now for free and secure a new customer bonus!
Selected leveraged products on BYD
With knock-outs, speculative investors can participate disproportionately in price movements. Simply select the lever you want and we will show you suitable open-end products on BYD
The leverage must be between 2 and 20
Advertising