BYD set a new monthly sales record for electric vehicles (EVs) in December 2022. 

This solidifies the company's position as the world's leading seller of cars powered by non-fossil fuels and proves investor Warren Buffett's Berkshire Hathaway right to have trust in BYD.

Stock Report

Shenzhen-based automaker BYD reported to the Hong Kong stock market that December sales of its all-electric automobiles increased by 4% from November to 235,197 units. 

In a report by South China Morning Post (SCMP), BYD's 2022 sales more than quadrupled to 1.86 million units, most of which were sold in China.

Booming sales to taxi fleets and budget-conscious individuals show how layoffs in China's tech sector and the pandemic-ravaged economy drive buyers toward cheaper, locally-built EVs instead of imported models or global names like Tesla.

Economic Edge

As the Chinese economy slows, "BYD is a beneficiary of the consumption downgrade," said Eric Han, senior manager at Shanghai-based advising company Suolei.

Vehicles in the mass market segment are popular among China's middle class because they are considered a good bargain.

Compared to Tesla and other rivals like Nio and Xpeng, whose technology-packed models retail for more than 300,000 yuan ($43,500) apiece, the average price of a BYD is between 100,000 yuan and 200,000 yuan ($14,500-$29,000).

Consumers tightened their belts, especially on big-ticket products like vehicles, due to China's zero-Covid policy. Notably, the lockdowns within the nation led to the halt of orders throughout the mainland in 2022 and wrecked the world's second-largest economy.

"EVs priced below 200,000 yuan are popular among white-collar consumers because they want to save money," according to Tian Maowei, sales manager at Yiyou Auto Service in Shanghai.

BYD's high-performance batteries are often regarded as being on par with those used by luxury automakers, making the company's electric and plug-in hybrid vehicles hot sellers in China.

See Also: BYD is China's Top-Selling Car Brand in November 2022, Tesla Doubles Retail Sales - Data Shows

Against Tesla

When it overtook Elon Musk's Tesla as the market leader, BYD (which had its origins as a battery company) broke monthly sales records for ten months in a row since March 2022. 

As of Dec. 8, 2022, Berkshire Hathaway held 14.9% of the BYD shares listed in Hong Kong.

As a result of delivering just 405,278 EVs throughout the globe in the last three months of 2022, Tesla saw its stock price fall by an all-time low, missing Wall Street's quarterly sales expectation by 6%. 

While the 1.31 million units shipped worldwide last year were up 40% from the previous year, it was still 29% behind BYD's revenues.

BYD was established in 1995 by Chinese tycoon Wang Chuanfu, and the company has been manufacturing automobiles since 2003. Its primary market is mainland China, but the company also has ambitions to enter other markets.

When it comes to luxury electric vehicles on the mainland, Tesla is still far and away in the lead. 

More than 390,000 Model 3 and Model Y cars were shipped out of the company's Gigafactory in Shanghai to Chinese clients in the year's first 11 months. It is an increase of 21.5% compared to the company's full-year sales of 321,000 units in 2021.

Read Also: Tesla Leads Norway's Growing EV Industry in 2022 with a 12.2% Market Share