Chinese automaker BYD surpassed Tesla in all-electric vehicle sales in the last quarter of 2023, with 526,409 units compared to Tesla's 484,507 units.

BYD's success is attributed to strong government support in China, affordable pricing, and a focus on both hybrid and battery-only models.

Despite this, Tesla remains the overall sales leader for 2023, delivering over 1.8 million EVs.

Analysts suggest Tesla's future looks promising due to declining cost of electric batteries and the introduction of a mass-market EV model.

Both BYD and Tesla face competition, with BYD entering the European market and Tesla launching its Cybertruck.

Potential tariffs due to the EU's investigation into Chinese subsidies could challenge BYD's growth.

Tesla faces challenges with meeting growth goals and expiring federal tax credits for its Model 3 sedan.

Chinese manufacturers are expected to control a third of the global EV market by 2030, causing concern in Western countries.

BYD aims to circumvent potential EU tariffs by building a new factory in Hungary.

Traditional automakers like Ford, General Motors, and Volkswagen struggle with declining EV demand in Europe and the US.