The two biggest manufacturers of electric vehicles, Tesla (TSLA) and BYD (BYDDF), are increasingly direct competitors in China and most of the rest of the globe.

EV firms including Nio (NIO), Li Auto (LI), Xpeng (XPEV), Rivian (RIVN), and Lucid (LCID) are receiving a lot of attention.

The initiatives of well-known automakers like General Motors (GM), Ford Motor (F), and Volkswagen (VWAGY) are also covered. But BYD and Tesla are distinct.

The concept of China's BYD competing with Tesla at one point would have been absurd, and Elon Musk did indeed find the idea absurd back in 2011.

Musk replied on Twitter. "That happened a long time ago. These days, their autos are fiercely competitive.

The Chinese EV and battery juggernaut BYD outsold Tesla in terms of vehicle sales in 2022. Tesla continues to be the leader in all-battery electric cars (BEVs).

Tesla has reduced prices several times in 2023 as demand has had a hard time keeping up with increasing production capacity.

Tesla has ignored public price reductions in recent weeks in favor of special offers and discounts.