It's no surprise that electric vehicles (EVs) are rapidly replacing conventional internal combustion engine vehicles, with governments across the world prioritizing the reduction of emissions to control global warming. The U.S. government is aiming for EVs to account for half of all vehicle sales by 2030, while Europe is targeting 100% EV sales by 2035. China, the largest EV market in the world, is also gearing up to impose more stringent vehicle emissions regulations starting July 1 -- implying a more favorable environment for EV sales.

So there is huge growth potential for EV companies, especially well-established players such as Tesla (NASDAQ: TSLA) and BYD Company (OTC: BYDDY). While Tesla has been the undisputed EV leader for several years, BYD surpassed the company in deliveries in the first half of fiscal 2022. Both companies are in a race to reduce the prices of electric cars, thereby boosting deliveries. But which of the two will make the better investment?

Let's find out.

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Source Fool.com