BYD, China's largest electric vehicle (EV) manufacturer, experienced a significant sales drop in the first quarter of 2024, with a 43% decline compared to the last quarter of 2023. This downturn may result in BYD relinquishing the title of the world's top EV seller to Tesla, which it had secured the previous year. In the first quarter, BYD sold 300,114 EVs, a sharp decrease from the record high of 526,409 units sold in the preceding quarter. Despite this, the sales were still 13.4% higher than the same period last year.

Tesla, on the other hand, is anticipated to report record sales of 458,500 vehicles for the quarter ending March 31, based on analyst forecasts. This figure, however, represents a more than 5% drop from the previous quarter, reflecting a softer overall demand and a slowdown in the Chinese market, where local competitors, including BYD, have intensified competition through aggressive pricing strategies.

The shift in sales dynamics underscores the intense rivalry in the EV market and highlights the challenges manufacturers face in maintaining growth amidst fluctuating demand and competitive pressures.