With people becoming more conscious of nature, the sales of electric vehicles have grown at a faster rate over the years. A new report claims that there is a huge spike in the sales of EVs as it grew by 61% and is going to reach the mark of 2.18 million units just in the second quarter of this year. However, there is not so great news for Tesla founder, Elon Musk. It is reported that China’s BYP Auto has surpassed the once global leader Tesla to become the top-selling EV brand. Though it is a piece of shocking news, we have all the details that led to this dethroning.
China’s BYD Beast Tesla
For the past years, Tesla secured its position as the global leader in electronic vehicles time and again. But for the first time ever, BYP Auto took over Tesla. It is recorded that BYD Auto has shipped over 354,000 EV units resulting in a huge spike of 266 percent YoY.
Compared to this number, Tesla’s global sales have spiked 27 percent YoY to over 254,000. However, it is quite shorter compared to what is expected initially. Of course, Covid led to an increase in the business of Tesla in the US, in China, the numbers were deeply affected due to frequent shutdowns.
The total EV sales consist of two main segments, electric vehicles and hybrid electric vehicles. Battery electric vehicles (BEVs) make for 72% of the sales whereas plug-in hybrid electric vehicles (PHEVs) contribute the rest. Counterpoint Research has presented this data and after that, we get to know that China is leading in the sales of EVs both in the European and US market.
To be precise, China’s EV sales have witnessed a growth of nearly 92% YoY to become 1.24 million units starting from only 0.64 units back in Q2 2021.
Soumen Mandal, a senior analyst said, “As the global semiconductor shortage has eased a bit, automakers are able to cater to the increasing demand for EVs. Moreover, EV sales would have been higher if China had not experienced fresh Covid-19 outbreaks during March.”
On the other hand, Neil Shah, the Research Vice President claimed, “Incentives play a crucial role in increasing EV adoption. For example, China’s strong incentive program for both automakers and consumers has helped the country become the global EV leader,” “Apart from big markets, smaller markets like India, Japan, Thailand, South Korea, and Malaysia have started providing various benefits for EV buyers and automakers either directly as a rebate in prices or tax exemption.”
Elon Musk Sets A Goal of Selling 20 Million EVs by 2030
Amidst all of this, Elon Musk who is the Chief Executive of Tesla Inc. claimed that his goal is to sell almost 20 million electric vehicles by 2030. This is a growth plan that the founder promised its shareholders and also claims to follow the adoption of sustainable energy. If so happens, Tesla will become twice the size that any automaker ever in history has ever achieved. In case, the prediction comes true, Tesla will be taking over almost 20% of the entire global vehicle market that is running.
However, for such a plan, Musk will be confronted with many challenges. Getting enough batteries and critical raw materials like lithium as well as nickel are quite a challenge when it comes to serving 20 million vehicles. Moreover, the price tag will be pretty steep. If estimates are to be made, then Tesla would have to spend around $400 billion or more in the upcoming eight years to achieve its goals.
BYD had a staggering 183% YOY increase of sales!
— BYD (@BYDCompany) August 3, 2022
Musk said, “Long-term, we’re expecting to make on the order of 3,000 gigawatt hours or 3 terawatt hours per year,” “I think we’ve got a good chance of achieving this actually before 2030, but I’m highly confident that we could do it by 2030.”
Though it seems to be quite a task, we do not know what more can be possible for Musk. So, for now, Tesla EV sales are lagging behind, and hopefully, in the near future, they will match the expectations that Musk has laid. What are your thoughts regarding this?
Stay tuned for more updates, Lee Daily.