Published Online:September 2025
Product Name:The IUP Journal of Case Folio
Product Type:Article
Product Code:IJCF030925
DOI:10.71329/CaseFolio/2025.25.3.35-50
Author Name:Syeda Ikrama and Syeda Maseeha Qumer
Availability:YES
Subject/Domain:Management
Download Format:PDF
Pages:35-50
The case is about the battle for global supremacy between two electric vehicle (EV) giants, US-based Tesla Inc. (Tesla) and the Chinese automaker BYD Company Limited (BYD). While Tesla continues to be a leading player in the EV market, BYD has been rapidly gaining ground surpassing it in Q4 2023 to become the world’s largest seller of battery electric vehicles (BEVs), shipping more than a half a million cars in the quarter and meeting its target of 3 million+ cars annually. However, Tesla reclaimed the crown in Q1 2024. The case describes the competitive advantages of both the automakers. BYD’s broader range of EVs, battery technology, vertical integration, affordable pricing, and expanding global presence are key factors that led to its ascendance in the global EV space. On the other hand, Tesla had distinguished itself from rivals with its sleek EV models, cutting-edge technology, electric-only strategy, vast supercharging network, and continuous innovation. However, as the competition in the crowded global EV market heated up, both BYD and Tesla faced some common challenges such as a weak market demand for EVs, quality control issues, regulatory compliance, and the profit generation. Going forward, the competition between these two giants will likely intensify. While BYD is well-positioned to challenge Tesla’s leadership in the EV market, Tesla also has the latent possibility to remain the EV champion.
In the fourth quarter ending December 2023, BYD Company Limited (BYD), one of the leading electric vehicle (EV) makers in China, overtook US-based Tesla Inc., (Tesla) to become the world’s top-selling EV maker based on global sales of electric cars. During the quarter, BYD sold a record 526,409 all-electric cars, while Tesla sold 484,507 cars.i However, the Chinese EV maker tripped in early 2024, selling only 300,114 battery electric vehicles (BEVs)1 in the first quarter due to flagging demand and increasing competition in its home market, China. That fall was big enough for Tesla, which sold 386,810 BEVs in the same period, to reclaim its crown as the world’s largest seller of BEVs in Q1 2024