Elon Musk's Tesla is no longer the world's biggest electric vehicle (EV) producer.
Its Chinese competition BYD has now claimed the top rank in EV production, and Tesla sits at the second spot.
Tesla co-founder and CEO Elon Musk verbally reacts in front of the newly unveiled all-electric battery-powered Tesla Cybertruck with broken glass on windows following a demonstation that did not go as planned on November 21, 2019 at Tesla Design Center in Hawthorne, California.
BYD Dethrones Tesla
According to a Nikkei Asia report, Tesla sold around 564,000 cars in the first half of 2022. BYD increased its sales by 314.9 percent from the first half of 2021 to 641,350 new energy vehicles sold in the first half of 2022. Additionally, 323 519 battery electric vehicles were purchased out of the sales.
The most recent lockdowns in China, and more notably in Shanghai, had a significant negative impact on several EV manufacturers, including Tesla, Nio, Li Auto, and Xpeng.
The majority of BYD's plants are situated in areas that did not experience prolonged periods of lockdown. Thus, manufacturing carried on as usual.
Tesla was able to sell 936,172 vehicles in 2021, but it's unknown whether the business can reclaim the top spot. BYD, which has surpassed LG to become the world's second-largest producer of EV batteries, is partially controlled by Warren Buffet's Berkshire Hathaway.
Why Did Tesla Fall to 2nd Place?
Due to the COVID lockdown in the city, Tesla's Shanghai Gigafactory 3, which shoulders half of its global output in 2021, was closed for 22 days in May. The factory's productivity struggled to return to pre-pandemic rates even after it had resumed due to constant parts bottlenecks.
Holding factories that won't be affected by lockdowns and having easy access to a wide range of batteries is what exactly catapulted BYD to the top EV producer spot.
Since January, BYD's stock has increased 36 percent, and the automaker is now closing in on a market valuation of one trillion Chinese yuan, or roughly $149 billion.
BYD's quick climb to the position of the top domestic vehicle manufacturer in China has been aided by Beijing's campaign for citizens to reduce their carbon emissions, according to Insider.
The Insider further noted that despite a pollution investigation into one of its facilities in the province of Hunan, the EV company had maintained growth in sales and share value. Residents in the region had complained of nosebleeds, vomiting, and other health difficulties, which prompted the investigation.
The challenges Tesla is currently experiencing are significant. Elon Musk recently referred to Tesla's gigafactories in Austin and Berlin as "gigantic money furnaces."
The carmaking company has recently raised its prices for its vehicles. It is currently subject to investigation regarding Autopilot crashes and is also embroiled in a legal battle with its former workers.
Related Article: Tesla Allegedly Breaks Elon Musk's Order as Newly Hired Employees Appear on LinkedIn
This article is owned by Tech Times
Written by Joaquin Victor Tacla
