Tesla (NASDAQ: TSLA) logged impressive figures in 2023 both in terms of electric vehicle (EV) production and deliveries – 1,845,985 and 1,808,581, respectively – and beat analyst expectations for the fourth quarter, having delivered 484,507 vehicles.
Despite the significant increase compared to previous years, China’s BYD (SHE: 002594) has, nonetheless, overtaken Elon Musk’s electric vehicle company in Q4, selling 526,409 cars in the three-month period.
Still, while BYD has been gaining on Tesla since at least the middle of 2023, the American manufacturer’s figures for the entire year still came in higher than for the Chinese company.
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It is notable that both companies logged significant growth compared to the previous year despite a broader slowdown in the EV market that saw multiple smaller players in the industry, such as Nio (NYSE: NIO) and Lucid (NASDAQ: LCID), struggle significantly.
BYD and Tesla’s challenges and successes
Additionally, while Tesla successfully navigated the challenges of 2023, it did so, in part, by slashing prices to offset the slowdown in demand.
It also entered 2024 in the midst of a dispute with unions in the Nordic countries – particularly in Norway and Sweden – which could have significant implications given that Norway is the leading country when it comes to electric vehicle adoption and has, so far, mostly been buying Teslas.
Still, Tesla is well-positioned to continue expanding its production and sales in 2024 as it has a new lower-cost model in the works, is negotiating favorable import terms with India, and is preparing to build a new plant there.
On the other side, unlike Tesla, BYD offers hybrids in addition to electric vehicles, which has given a significant boost when it comes to deliveries, given that they have proven somewhat more popular than pure EVs in 2023.
BYD reacts to delivery record
Perhaps surprisingly, both American and Chinese investors appear either unphased or cautious despite record deliveries.
BYD stock has been trading almost entirely sideways in the previous days despite publishing strong delivery figures and is worth 193.17 CNY ($27.20) at the time of publication, having risen 0.30% in the last 24 hours.
Despite the current market stagnation, and in line with production and delivery success, the analyst consensus is that the Chinese EV maker’s stock is a strong buy with a 12-month price target of 331.71 CNY ($46.71) – an upside of 71.72% compared to the current value.
TSLA loses some ground despite strong Q4 figures
The story is much the same for TSLA when it comes to stock market performance. Its hares have remained mostly level – albeit with a slight decline – both in the last 24 hours and the last week.
Elon Musk’s EV maker’s stock has dropped 0.02% on the last trading day to $248.42 and is 2.37% in red in the last week.
Experts remain optimistic despite the struggles in the EV industry that have seen traditional car companies like Ford (NYSE: F) scale down their production, and the forecasts, particularly for Tesla, are rather bullish, with some estimating the company will reach $1 trillion in market cap by the end of 2024.
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