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As Tesla slows, the bigger threat to BYD is home grown

China’s battery EV makers Zeekr and Nio are catching up much faster than expected

Just when BYD seemed to have no more records left to break in China, it has hit another high. China’s biggest maker of electric vehicles sold a record number of electric and hybrid cars in the second quarter, closing in on the sales of the world’s top EV maker, Tesla.

Investor focus has been on whether BYD can overtake Tesla by sales once again, as it did in the last quarter of 2023. But the more important question is how the rising competition between BYD and the rest of its Chinese rivals plays out this year.

BYD’s EV sales grew more than a fifth in the June quarter, a period when Tesla is expected to report a drop in deliveries. For the month of June, Tesla shipments from its factory in Shanghai fell, according to data released by China’s Passenger Car Association on Tuesday, adding to declines in May.

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