BYD Co.’s earnings increased due to increased demand, although they fell short of expectations set by various analysts. This was due to a price war in China that affected all companies in that market.

Sales in China offset the drop in global demand, increasing BYD’s preliminary net revenues in 2023 by about 75% year-on-year to between 29 billion and 30 billion yuan. Despite these impressive numbers, the revenues fell short of the 31.5 billion yuan target.

BYD(BYDDF) shares declined nearly 4%, extending last year’s losses to 37%.

BYD surpassed Tesla in electric car sales in the last half of 2023

In the last quarter of the year, BYD sold 526,409 electric cars, surpassing Tesla (TSLA) for the first time to become the world’s largest producer and seller of this class of vehicles. The company has achieved this thanks to its various available and affordable models in China.

Like other companies involved in the same sector, BYD has been affected by the price war in China, the largest automobile market. For example, in November, the electric car company discounted its main models, such as Han, Qin, and Tang, by 10,000 yuan, a sign that it wants to achieve its annual delivery target.

It also plans to open its first plant in Brazil

The company has not only been content to displace Tesla; recently, the president of Brazil announced the construction of BYD’s first factory outside China.

The company plans to construct three plants in February and estimates they will be fully operational by the end of 2024 or early 2025. In this initial phase, the company forecasted 150,000 vehicles per year.

BYD’s journey through 2023 highlights the complexities of competing in the global electric vehicle market, balancing between aggressive pricing strategies and expanding international presence. Despite facing challenges like price wars that dampened its earnings forecast, BYD’s strategic moves, including surpassing Tesla in sales and establishing a manufacturing footprint in Brazil, underscore its ambition and resilience in the electric vehicle sector. These efforts reflect BYD’s commitment to not only lead in sales but also to forge a global brand synonymous with innovation and sustainability.