Tesla vs BYD 2023: Tesla stock price plummeted on big news, while BYD sales continue to surge.

Tesla (TSLA) and BYD (BYDDF) are the world's largest electric auto manufacturers, directly competing in many regions in China and around the world.

EV startups like Nio (NIO), Li Auto (LI), Xpeng (XPEV), Rivian (RIVN), Lucid (LCID) are drawing significant attention. Efforts from traditional automotive giants like General Motors (GM), Ford Motor (F), Volkswagen (VWAGY) have also been reported. However, Tesla and BYD stand out.

In 2022, Chinese EV and battery giant BYD surpassed Tesla in auto passenger carried. While Tesla remains the leader in Battery Electric Vehicles (BEV), the gap is narrowing.

On September 1st, Tesla announced a price adjustment for the Model 3 in China. However, Tesla also reduced the prices of the Model S and X in China and the USA, as well as the price of the fully self-driving system.

In 2023, Tesla, unable to keep up with strong production capacity demand and intensifying competition, repeatedly lowered prices.

Tesla's second quarter performance saw a significant increase in revenue compared to the same period last year due to continued price reductions and easy comparisons, leading to profit growth. However, a decrease in EPS is expected for the third quarter and full year.

BYD announced a substantial increase in earnings for the second quarter in late August, with record-high monthly sales figures in August. BYD aims to achieve its sales target of 3 million units in 2023.

Apart from improvements to the Model 3, Tesla has begun manufacturing the Cybertruck, but details such as the actual release date, price, specifications, etc., remain unknown. Musk has teased next-generation models but has revealed little else.

BYD offers a lineup of EVs ranging from $11,000 to $160,000 and continues to expand its lineup. For BYD, launching new models and refreshing existing models is commonplace.

Meanwhile, BYD currently supplies batteries to Tesla, making these two rivals also archenemies.

Tesla's stock price surged this year after going through a tough period in 2022. The stock was sold off after the second quarter earnings, and it is currently facing a key support level. BYD had a good year in 2023 but is now recovering from significant losses.