Buffett-Backed BYD Says Its NEV Sales Will Outdo Tesla China Numbers In June — Why That's Not Really A Fair Comparison

Chinese automaker BYD Co Ltd’s BYDDF said its new energy vehicle sales will surpass U.S. rival and electric vehicle maker Tesla Inc’s TSLA China sales by June, cnEVpost reported Friday.

What Happened: BYD, backed by Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B) Chairman Warren Buffett, sold 25,662 NEVs in April, just 183 vehicles less than Tesla’s 25,845 electric vehicle sales in the country.

See also: How to Invest in Tesla Stock

The Chinese government uses the term new energy vehicles to define plug-in electric vehicles eligible for public subsidies, and also includes plug-in hybrid electric vehicles and fuel cell electric vehicles besides the battery electric vehicles (BEVs). These could be cars, buses, trucks, or two-wheelers.

BYD’s NEV portfolio consists of cars, buses, and trucks. The automaker sold 16,114 battery-powered electric vehicles in April, a 61.7% jump year-on-year — a number more relevant for comparison against Tesla's offerings.

See Also: Warren Buffett-Backed BYD’s April EV Sales Soar, Outsells Rival Nio Amid Chip Shortage

Why It Matters: NEVs are expected to account for 20% of the total sales of new vehicles in China by 2025, according to the country’s recent New Energy Vehicle Industry Development Plan.

The cnEVpost report attributed the release of BYD DM-i series models' production capacity as the likely reason for a boost in BYD sales to overtake Tesla.

BYD DM-i series, an electric-powered hybrid model, has secured more than 100,000 orders since its unveiling in January this year.

BYD is scheduled to report the monthly sales numbers next week.

Tesla stock closed 5.3% lower at $572.84 on Thursday after a report from The Information said EV maker's orders by nearly half in a month in China — from 18,000 in April to 9,800 in May.

Besides BYD, Tesla's EV competitors in China include Nio Inc. NIO, XPeng Inc. XPEV, and Li Auto Inc. LI.

Price Action: Shares of BYD closed 2.18% lower at $48.43 on Thursday. 

Read Next: Apple, Tesla Earnings Reports Show An Increasing Reliance On China As A Market

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