BYD dethrones Tesla but the secret is elsewhere!
The duel of BYD and Tesla in electric vehicle sales dominates this period as the global market is constantly growing where balances are changing at a particularly rapid pace.
BYD gains a clear lead over Tesla after it managed to sell a larger number of electric vehicles, dethroning the U.S. automaker in the first 9 months of the year.
BYD sold 1,175,321 electric passenger cars, while for the same period Tesla sold 908,573 cars. But what about the revenues of these automakers in terms of profit per car?
Here clearly Tesla has the upper hand and even with a huge difference compared to BYD. But in terms of net profit for each vehicle sold, Tesla is ahead of BYD, having achieved $8.87 billion in 9 months. For the same period, BYD’s earnings were just $1.14 billion. This translates into a profit of 9,761 euros of dollars per car, which is 8 times more than the Chinese who make $1,190 per car.
Experts note that the huge interest in Tesla’s models allows the American company to raise prices and pass on the higher cost of materials and manufacturing to its customers.
Elon Musk, argues that only by controlling the supply of raw materials can prices be controlled and profits maximized. So in recent years Tesla has been rapidly engaged in lithium mining, an important raw material for the manufacture of batteries.
BYD on the other hand has taken several steps forward on this front. In June, the Chinese company agreed to buy six lithium mines in Africa, which will ensure sufficient ore reserves for the next decade.