China’s BYD electric car outsells Tesla globally

Elon Musk’s famous electric car brand Tesla no longer reigns as the world’s top electric vehicle (EVs) provider.

Tesla is currently in second place globally behind the Chinese BYD, an auto giant backed by Warren Buffett’s Berkshire Hathaway, which outsold it in the first six months of this year.

BYD witnessed a 315% rise in sales compared to last year, selling 640,000 electric vehicles, while Tesla delivered 564,000.

Tesla blames its sales fluctuations on the reoccurrence of supply chain issues and sales disruptions in China, and to logistics operations being affected by COVID-19 lockdown and movement restrictions.

For the first time in two years, Tesla’s stock was down more than 3% on Tuesday, which is due to a quarter-over-quarter drop in vehicle deliveries.

According to CNBC News, estimations concluded that Tesla’s shares could fall more than 40% due to the aforementioned challenges it faces.

Along with supply chain issues, Tesla is also struggling to ramp up production at its two new giga-factories located in Austin, Texas and Germany.

Musk seems to remain unfazed over Tesla’s current logistics issues, calling the new factories “gigantic money furnaces.”

It is noteworthy that Tesla’s shares are 27% higher in value than the past year, meaning the reasons behind the current drop may be temporary.

Tesla’s setback offered an opportunity for BYD, which sold 134,036 EVs last month alone, which is a year-on-year increase of 162.7%, according to Barron’s report.

Musk’s company delivered almost 565,000 electric vehicles at the beginning of the year. In the second quarter, Tesla delivered 254,695 EVs, a drop of 18% compared to first quarter deliveries, amounting to 310,048.

June recorded the highest vehicle production month in Tesla’s history, according to the company.

Tesla may not be the largest EVs maker in the world, but its Model Y and Model 3 vehicles were named ‘the most American-made cars’ in a survey from Cars.com, last month.

The survey was conducted by Cars.com‘s annual American Made Index, which awarded the Tesla Model Y compact SUV as the number one American-made car, with the Model 3 compact sedan coming in second.

The index is based on a specific set of data including where the cars are assembled, parts sourcing through the American Automobile Labeling Act and Factory Employment.

Jenni Newman, Cars.com editor-in-chief, said in a statement that “the composition of this year’s much-anticipated American-Made Index is particularly interesting in the context of our current marketplace, where high gas prices and scarce inventory meet peak consumer interest in electric vehicles and a heightened demand for American-made products.”