Tesla to Continue to Dominate US EV Market Through 2026 Though BYD Already Dominates in the Rest of the World

Elon Musk’s electric car maker, Tesla, has been a dominant EV industry across the world for some years.

According to Statista.com, the company is projected to reach $26.43 billion in revenue in 2023 and to boost this figure by 2.72% by 2027.

$26.43 billion in revenue in 2023

However, while Tesla will likely keep its dominance as the top EV maker in the US, it has already lost the top spot on a global scale.

New reports suggest that Build Your Dreams (BYD), a Chinese manufacturer, challenged Tesla’s dominance (if you include plug-in hybrids).

The company managed to surpass Tesla in terms of deliveries of passenger EVs (and plug-in hybrids) by more than 125,000 vehicles in Q1 2023 alone. As a result, BYD became the new top-selling EV brand around the globe.

The company was able to disrupt the EV market thanks to affordable options, particularly when it comes to its hybrid vehicles.

Meanwhile, Tesla and its Battery EVs are still highly expensive, becoming more of a symbol of social status among consumers than an affordable EV.

Tesla Remains the Top EV Seller in the US

In the US, Tesla is still dominant, and projections for 2026 suggest that its models should account for 18% of the domestic EV market.

John Murphy, a Bank of America Securities analyst, presented this figure. He noted that Ford Motor and General Motors would be fighting for second place, each holding about 14% of the market by that time. After that, Stellantis NV will be the next biggest EV firm, with around 8% of the market.

Last year, Murphy predicted that GM and Ford were likely to overtake Tesla by 2025, but now, it seems that he has changed his position.

In his last report, he noted that Tesla’s price cuts had impacted the landscape, as Musk was willing to accept lower profits in exchange for keeping the market dominance.

However, BYD emerged as an unexpected new player that is again disrupting the market and future projections.

The company, supported by the legendary investor, Warren Buffett, has spent the last two years rapidly expanding into international markets. However, Tesla’s dominance in the US has made it difficult for BYD to conquer that market as quickly as it did others.

BYD Plans to Stay Out of the US

Despite its low presence in the US, the brand managed to go from exporting a total of 56,000 vehicles in 2022 to selling over 10,000 vehicles in May 2023 alone.

In Q1 of this year, the company supplied over 548,000 passenger EVs in total, while Tesla shipped only 422,000 during the same period.

Another reason why BYD is staying out of the US is the current political situation.

The tensions between the US and China have been escalating, so BYD is focusing on other markets, including Thailand, the UAE, Costa Rica, Brazil, Japan, Australia, the UK, Norway, Germany, and even Mexico.

BYD cars also became very popular in Singapore, and the firm emerged as the best-selling EV brand in this market in the first five months of 2023.

When asked whether the company has plans to export to the US, BYD’s senior VP, Stella Li, said that the country is not under the firm’s current consideration.

BYD also noted that President Biden’s Inflation Reduction Act may have a negative impact on the adoption of EVs in the US. For all of the mentioned reasons, BYD is sticking to its policy of not having to necessarily reach every market out there.

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