In a remarkable turn of events, a Chinese company backed by Warren Buffett’s Berkshire Hathaway has surpassed Tesla in electric car sales for the first half of 2022. BYD, based in Shenzhen, tripled its production of electric vehicles in just one year and delivered 641,000 cars, outperforming Elon Musk’s company by nearly 100,000 units. Tesla, on the other hand, delivered 565,000 vehicles during the same period, falling short of the forecasted numbers. This unexpected development highlights the growing industrial prowess of China in the electric vehicle sector, which witnessed a substantial increase in EV sales last year compared to the rest of the world.
BYD, known for manufacturing a wide range of electric vehicles such as cars, buses, and large goods vehicles, has also emerged as the largest battery maker for electric vehicles, surpassing LG, the South Korean industrial conglomerate. This accomplishment has contributed to the booming growth of BYD’s shares, which have increased by 35% over the past year, approaching a market cap of 1 trillion yuan. In contrast, Tesla’s share price has experienced a decline of approximately 35% this year, although it still maintains a market cap of $706 billion.
Interestingly, Tesla’s setback as the leading EV maker was partially due to a Covid-related shutdown at its Shanghai factory, forcing assembly line workers to sleep on-site to maintain production numbers. Elon Musk had previously dismissed BYD and Warren Buffett’s investment in the Chinese company back in 2011, expressing skepticism about their product quality and technological capabilities.
Meanwhile, in the UK, new car sales have suffered due to ongoing chip supply issues, making June 2022 the worst June for car sales in 26 years. Sales fell by 24% compared to the previous year, with only electric vehicles experiencing growth, accounting for one in six cars sold. The Tesla Model Y emerged as the best-selling electric car during this period, second only to the Vauxhall Corsa, which holds the title of the overall best-selling car of the year thus far.
However, despite the positive growth in electric vehicles, overall car sales are expected to remain weak due to factors such as declining consumer confidence, decreasing real wages, and rising fuel prices. Diesel cars witnessed the sharpest decline in sales, dropping by almost half during June.
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