BYD poised to retake global EV sales crown from Tesla

Tesla delivered 486,532 vehicles in the third quarter of 2026, beating the Zacks Consensus Estimate of 471,262 units, with deliveries up 1.3% sequentially but down 2.1% year over year. Through the first nine months of 2026, Tesla delivered 1,324,681 vehicles and needs just more than 311,448 units in the fourth quarter to break its streak of annual declines. The competitive picture remains concerning, as BYD sold 762,478 passenger battery-electric vehicles in the quarter, up roughly 31% year over year, while NIO delivered 109,178 vehicles, up 25.4% year over year. In the last reported quarter, automotive gross margin excluding regulatory credits slipped to 16.3%, and energy storage margins fell to 20.4% from 39.5%, while Tesla expects capital spending above $25 billion in 2026. Tesla's robotaxi network had covered roughly 380,000 driverless miles, compared with Waymo's more than 220 million rider-only miles, and the company recently moved its Roadster demonstration from Oct. 1 to Oct. 15. Tesla's Oct. 21 earnings report is much-awaited, and TSLA stock currently carries a Zacks Rank #4 (Sell).

The UK new car market recorded its best September since 2017, with registrations up 12% year-on-year to 350,518 units, according to figures released on the 2nd by the Society of Motor Manufacturers and Traders. Supported by strong demand for electric vehicles, battery electric vehicle registrations in September rose 36% year-on-year to 99,199 units, taking a market share of 28.3%. In contrast, petrol car registrations fell 6.7% and hybrid vehicle registrations fell 4.2%. Diesel car registrations rose 11.5% in September, but were down 7% over the January-September period compared with a year earlier, with their market share shrinking to about 4.5% this year. By brand, the Jaecoo 7 SUV from China's Chery was the best-selling model, while among battery electric vehicles the Sealion 7 SUV from China's BYD ranked third, behind US EV giant Tesla's Model 3 sedan and Model Y SUV. On a year-to-date basis, battery electric vehicles account for only 26.2% of total sales, well below the 33% mandated for 2026 and also short of last year's 28% target.

Argentina's first Chinese auto show opened on the 2nd in the capital, Buenos Aires. Under President Milei, the country's auto market is shifting from strong protectionism toward a more open and competitive environment. Helped by a measure allowing up to 50,000 electric and hybrid vehicles to be imported duty-free in 2026, Chinese brands have been entering the market one after another, and in August the Chinese brands' share of passenger car and light commercial vehicle sales reached 10%, up from about 2% in late 2025. Chinese electric vehicle giant BYD has become the ninth-largest auto brand by sales since entering Argentina in late 2025. More than 20 Chinese brands exhibited at the auto show, including Geely, Chery, Great Wall Motor and Dongfeng Motor, and Sebastian Beato, president of the Argentine auto dealers association, said the remarkable growth of Chinese brands is prompting the domestic auto industry to produce new models.

Global Securities, or GBS, says King Gen Public Company Limited, or KGEN, is entering a turnaround phase, raising its stake in Omoda & Jaecoo Manufacturing (Thailand) Company Limited, which operates the electric vehicle plants for the OMODA JAECOO and CHERY brands, from the current 43.7% to 51% in early July, and then to 60% in late July to early August. This will shift revenue recognition from the share of profit of an associate to full consolidation of both revenue and profit. Management expects that after the stake increase, revenue will grow significantly year on year to 25 billion baht, with a net profit margin of 2.5-3.0%, or roughly 600-700 million baht. Previously, KGEN reported second-quarter 2026 profit of 37 million baht, up 171% quarter on quarter and 152% year on year, after losses in the first quarter of 2026 and the second quarter of 2025. The main driver was the share of profit from its investment in that associate, whose production line began operating on 20 April 2026, while revenue from sales and services grew to 227 million baht, up 8% quarter on quarter and 36% year on year. Bookings for JAECOO and OMODA electric vehicles at the Big Motor Sale 2026, held from 21-30 August 2026, totaled 5,028 units, with deliveries scheduled for September to October 2026, an additional factor supporting revenue and profit growth. The current share price still cannot be assigned a P/E ratio because the company has posted continuous losses from 2022 through the first six months of 2026, though earnings are expected to turn around from 2026 onward. The stock trades at a P/BV ratio of 2.58 times, above its one-year, two-year and three-year averages of 2.56, 2.30 and 2.10 times respectively.

BMI Country Risk and Industry Research, part of Fitch Group, forecast that Singapore's electric vehicle sales in 2026 will rise 34.3% to 34,940 units, accounting for 54.6% of total car sales in the country, driven by government tax incentives, a wave of affordable EV models made in mainland China, and the expansion of EV charging infrastructure. Xinhua reported that as of June 2026, new car registrations that were EVs reached 70%, and BMI expects this trend to continue through 2035, by which time EVs are expected to make up 44% of all cars on Singapore's roads. BMI said subsidies and incentive measures, including grants for shared EV chargers that support the installation of chargers at private residential condominiums, will continue to support demand, and it forecast that EV sales will account for as much as 85% of total car sales by 2035. In the first quarter of 2026, new car registrations that were EVs accounted for 57.6%, or 7,679 units, marking the first time EV sales overtook sales of internal combustion engine and hybrid vehicles.