Large BYD Recall Could Help Tesla

Cars and Drivers

Published: September 30, 2024 6:45 am

24/7 Wall St. Insights

Chinese automaker BYD just issued big recalls of two of its most popular models.
Is this a chance for Tesla Inc. (NASDAQ: TSLA) to gain some market share in China?
Also: Dividend legends to hold forever.

China’s electric vehicle (EV) market share leader BYD has just recalled 97,000 of its vehicles. Parts of the steering control in these can cause fires. BYD is Tesla Inc.’s (NASDAQ: TSLA) primary rival in China, where the American company struggles with local competition.

According to Reuters, “The Chinese automaker is recalling Dolphin and Yuan Plus EVs manufactured in China between November 2022 and December 2023, according to a statement from the State Administration for Market Regulation.” The two models are among BYD’s most popular in terms of unit sales.

Tesla needs to take sales from BYD to increase its market share. However, BYD’s share in China is over 25%, while Tesla’s share is about 6%.

In August, Tesla had its best sales month of 2024. The U.S. car company sold about 63,000 units, up 37% from July. However, it continues to struggle to gain any ground on BYD.

Tesla needs BYD to make one or more unforced errors that could hamper the pace of its sales success. A huge BYD recall could fall into that category.

Three Warning Signs Ford Is in Trouble

Want to Retire Early? Start Here ^(Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.