It appears that the United States is quite envious of the robust development of China's new energy vehicles, hence the introduction of substantial subsidies through the Inflation Reduction Act to support the domestic new energy vehicle industry, with the hope of also restricting and undermining related industries in other countries.

However, recently, Tesla and BYD have each released their annual data for 2022, and we find that the United States has been engaging in futile efforts, with the substantial subsidies likely ending up as wasted funds.

01, Stock Price Difference

The chart above shows the stock price changes of the two companies from the beginning of 2019 to the present, with the blue line representing BYD.

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We can see that Tesla's stock price once rose rapidly, but then experienced a significant drop, while BYD's stock price trend has been relatively stable.

However, from 2019 to the present, in terms of the increase, BYD's increase is lower than that of Tesla.

But if we switch to a comparison of the trend from 2021 to the current situation, we find that BYD's cumulative increase has reached 60%, while Tesla has cumulatively declined by 15%, which is still after a noticeable recent rebound; otherwise, Tesla's performance would be even worse.

This indicates that the trend is changing. Previously, Tesla's sales exceeded those of BYD, but starting last year, BYD's sales successfully surpassed Tesla.

Moreover, Tesla is continuously reducing prices, and future profit margins will also continue to decrease.

The above is a visual comparison of the two companies based on stock prices. Next, let's take a look at the specific data.02, Sales Surpass

It is well-known that BYD is a renowned Chinese brand, and its reputation has also spread far and wide in the global market, with its high cost-performance ratio making it widely popular.

Tesla, on the other hand, is an American brand with moderately priced products. Its aesthetically pleasing design is also attractive to customers, and it has a broad audience in the United States, which has gradually increased its fame. Many people in China are aware of Tesla because of its eye-catching appearance.

On January 31st, Tesla released its 2022 annual sales figures. Throughout the entire year, Tesla produced a total of 1.3696 million vehicles and sold 1.3139 million vehicles.

The day before Tesla's data announcement, BYD also revealed its sales performance for the previous year. After calculation, BYD's total sales revenue for the 2022 fiscal year increased by an astonishing 425.42%-458.26% compared to 2021.

In 2022, BYD has significantly outperformed Tesla. Tesla's sales volume reached 1.8635 million vehicles, while BYD's sales volume was 1.31 million. Last year, BYD's total sales volume made it the world's number one, well-deserved.

Many people might find it strange that despite BYD's huge sales volume, its revenue still does not match Tesla's. This is closely related to the characteristics of their brands and their production and operation methods.

03, Profit Differences

Although Tesla's total sales volume is less than BYD's, upon closer examination of the data, Tesla is not entirely behind. Tesla sold 1.31 million pure electric vehicles, ranking first globally. However, when considering the sales volume of plug-in hybrid models, adding this data to the mix, the top spot goes to BYD.

BYD's sales revenue has been soaring, and its profits have also been closely following, riding the express train. But when it comes to profit per vehicle, the gap between Tesla and BYD begins to widen.Tesla is a manufacturer of pure electric vehicles, while BYD has a very distinct characteristic, belonging to the category of traditional automobile manufacturers. Tradition implies that for BYD, it is not so easy to develop other products or change directions. This is a disadvantage.

However, BYD's strengths are also very apparent; its prowess in areas such as batteries and engines can also offset part of the costs associated with the transition to new energy.

Additionally, the significant difference in profits between Tesla and BYD is also related to their production and business methods, which can be considered two extreme routes.

It should be noted that in the Chinese market, making a small profit on a large volume of sales can actually lead to more earnings. Therefore, for BYD, they will not set their prices too high. It is also under the pricing pressure from BYD that Tesla has been continuously lowering its prices to compete for market share.

It is clear that Tesla's previous strategy was to earn as much as possible, but as competition becomes more intense, Tesla has lowered its stance.

04, Conclusion

The comparison between the two companies represents a comparison between two countries, but there is no doubt that China has already captured a higher market share in the field of new energy vehicles.

The latest data shows that last year, our country's new energy passenger cars have occupied 63% of the global market, and the share in the fourth quarter of last year reached 64%.

In this high-tech industry, we have already achieved a leading advantage.