The company referred to as Tesla without the drama can now be called Tesla with more sales and less drama. The final quarter of 2023 marked a significant milestone as BYD, a Chinese automaker, surged ahead of Tesla in EV sales. BYD sold an impressive 526,409 fully electric cars, eclipsing Tesla's delivery of 484,507 vehicles. We saw this coming after the third quarter, and if projections hold, Tesla will not be regaining the EV crown anytime soon.
Tesla’s fourth quarter was impressive; deliveries were up 38% year over year, and production was up 35% year over year. Plus, the company sold more Model S and Model X than it has during any quarter in the past five years. However, for a company that has projected 50% year-over-year growth and has been the unquestioned king of the EV sector, this performance falls a little flat, and it’s allowed one of the bigger threats to catch up.
BYD's performance in the fourth quarter was nothing short of extraordinary, with a record sale of 942,651 vehicles. This figure included a 55% share of Battery Electric Vehicles (BEV) and 45% of Plugin Hybrid Electric Vehicles (PHEV). Notably, BYD transitioned away from Internal Combustion Engine (ICE) vehicles in April 2022, focusing entirely on electric and hybrid models.
The Competition is Here
The origins of BYD trace back to its foundation as a battery company, later expanding into automobile manufacturing in the mid-2000s. With the backing of notable investor Warren Buffet, BYD has often been paralleled with Tesla; however, the two companies differ significantly in their product offerings and business strategies. Tesla adopts an online direct sales model, whereas BYD leverages a vast dealer network for both its international expansion and dominance in its domestic market. BYD has demonstrated a commitment to nurturing its dealership network, a model often perceived as outdated.
The competition between BYD and Tesla is set to intensify in 2024. BYD is venturing into areas previously dominated by Tesla, such as self-developed autonomous driving systems and a direct sales model. This shift is evident in establishing two new EV brands, YangWang, and Fang Cheng Bao, which adopt direct sales strategies and expand their own sales networks. Fang Cheng Bao launched 154 showrooms and direct-operated stores in 84 cities in 2023, while YangWang aimed to open 90 stores in 40 cities by the year's end.
Conventional Cars in Demand
In contrast to Tesla's focus on advanced autonomous driving capabilities and high-tech interiors, BYD's vehicles feature more traditional interiors, emphasizing physical buttons and conventional design. The company's research and development primarily centers on battery technology, striving to offer high-quality vehicles at reasonable prices.
BYD's approach to business is characterized by vertical integration. The company, led by founder and CEO Wang Chuanfu, controls the entire production chain, from lithium mining to battery manufacturing, vehicle assembly, shipping logistics, and even car insurance. This strategy mirrors Tesla's approach to some extent, with both companies prioritizing cost efficiency and affordability.
For the year 2023, BYD's total electric vehicle sales soared to 3,023,679, a 62% increase from the previous year. Of these, 1,574,804 were BEVs. Conversely, Tesla delivered 1,808,581 vehicles in 2023, marking a 38% increase from 1,313,851 in 2022.
Despite BYD's impressive annual performance, Tesla maintained its lead in cumulative sales for the year. However, projections suggest BYD is poised to continue as the leading EV manufacturer in 2024.
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Tesla is getting ready to start rolling out FSD support for hardware 3 vehicles in China. Tesla is internally testing what appears to be a build of FSD V12.6 on HW3 vehicles with its employees.
A post on Chinese social media platform Rednote initially shared the software update details and was then shared by Tesla Newswire. We’ve verified that the vehicle in question is a 2023 Model Y, confirming it falls within the HW3 hardware generation.
We reviewed FSD V12.6 in depth here, and provided a comparison to FSD V13 here, but here’s the key points you’ll need to know.
FSD V12.6 is Tesla’s latest revision of FSD for HW3 vehicles and it’s is very comparable to FSD V13 in terms of features. It includes 3 speed profiles, Chill, Standard, and Hurry, which control how aggressive FSD is in making lane changes and ensuring it stays at, near, or above the speed limit.
This version of FSD also comes with an improved controller, as well as earlier and more natural lane change decisions, making it far more capable than V12.5 or V12.3 builds.
For Chinese customers getting their first taste of FSD after using Autopilot for years, it’s mindblowing. It can handle city level streets, hanlde turns and traffic control signs and get you to your destination with minimal interventions.
When Does It Release?
Given’s China’s more crowded streets and more complex road layouts, we weren’t sure whether Tesla would introduce support for HW3 vehicles in the market. This news is a positive and encouraging sign, not only for FSD in China, but for all HW3 vehicle owners out there.
Tesla usually releases updates to employees in advance of releasing them to its general customers - providing them with a second chance to find and fix bugs. Usually, once updates make their way to employee vehicles, and barring any major issues, they begin rolling out to customers within one to two weeks.
China currently requires owners to buy FSD, as FSD subscriptions aren’t available in the country yet. If you’re in China and bought FSD on a HW3 vehicle, it may not be long before you have access to FSD.
Tesla’s Cybertruck has officially earned a 5-Star Safety Rating from the NHTSA—an impressive achievement given the vehicle’s design. The achievement demonstrates Tesla’s engineering prowess. As one engineer points out, it wasn’t an easy feat.
Interestingly, the NHTSA only recently disclosed the results, despite the crash tests being completed a while ago. According to Lars Moravy, Tesla’s VP of Vehicle Engineering, the team had been aware of the 5-star rating for quite some time. While the reason for the delay remains unclear, now that the results are public, Tesla’s engineers can finally share how they achieved the rating.
Crumple Zones
Wes Morril, the Cybertruck’s Lead Engineer, wrote about the crash test video on X recently, addressing the claims that the Cybertruck doesn’t have a crumple zone. He also posted a side-by-side video (below) of the engineering analysis and the crash test itself.
Engineered Crash Safety
There’s a lot of engineering precision at play when a Cybertruck is involved in a crash. Unlike traditional crash structures that rely on crash cans and collapse points, the Cybertruck’s front gigacasting is designed to absorb and redirect impact forces in a highly controlled manner.
It all starts with the bumper beam, which crushes within the first few milliseconds of a high-speed impact. At the same time, the vehicle’s sensors rapidly analyze the crash dynamics and determine the optimal deployment of safety restraints, including airbags and seat belt pre-tensioners. These split-second actions are crucial in keeping occupants safe.
As the crash progresses, the vehicle’s structure deforms in a carefully engineered sequence. The drive unit cradle bends, directing the solid drive unit downward and out of the way, allowing the gigacasting to begin absorbing impact forces.
The casting crushes cell by cell, methodically dissipating energy in a controlled manner. This gradual deceleration reduces the g-forces transferred to occupants, making the crash much less severe. As the gigacast begins crushing, the safety restraints are deployed.
As Wes points out in his post - you can see how accurate the virtual analysis and modeling were. The video shows the simulated crash side by side with the real-life crash test and they’re almost identical. All that virtual testing helps provide feedback into the loop to design a better and safer system - one that is uniquely different than any other vehicle on the road.
All the armchair experts claimed the Cybertruck has no crumple zone and I get it, the proportions seem impossible. It was a tough one and there is a lot of engineering that went into it. Let me break it down for you:
![A Look at the Tesla Cybertruck’s Crumple Zones [VIDEO]](https://www.notateslaapp.com/img/containers/article_images/cybertruck/cybertruck-crash-test.webp/e43ef2433bd6e44ae8db63421604a4fb/cybertruck-crash-test.jpg)
