China's electric vehicle producer BYD unseated Elon Musk's Tesla, according to latest statistics released Tuesday.

The U.S.-based car manufacturer run by billionaire Musk delivered 484,507 vehicles in the fourth quarter of 2023, said a company filing – up more than 11% from the previous quarter.

But this increase was not enough to maintain Tesla's crown as the world's top battery electric vehicle producer and seller, as Chinese rival BYD reported sales on Monday of 526,409 for the same period.

These figures underscore the challenges Tesla will likely face this year, from competitors keen to capitalize on the growing demand for EVs.

Tesla's stock slipped after the news was announced, before regaining ground.

As well as besting Tesla in pure electric vehicle sales, BYD sold more than 400,000 plug-in hybrid electric vehicles in the fourth quarter.

In total, it sold more than three million passenger vehicles last year.

However, Tesla was still the top seller of EVs on an annual basis, delivering more than 1.8 million vehicles to customers in the year to December, well above BYD's sales figure of just under 1.6 million.