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Havish Gupta
Figuring Outย โขย 1m
How BYD Is Killing Tesla in Its Own Game It was 2011, and in a Bloomberg interview, The interviewer asked Elon, โWhat do you think about BYD?โ. Upon hearing the name, Elon started laughing and responded, โDo you think they are our competitors? Have you seen their cars?โ At that time, it made sense for Elon to say that, as BYDโs cars were expensive and inferior compared to Tesla. And although BYD was selling more cars than Tesla, most of those vehicles were combustion-engine models rather than fully electric. Fast forward 10 years. In Q1 2020, Tesla sold four times as many EVs as BYD. However, within just 2.5 years, BYD overtook Tesla in car sales, beating it at its own game. Furthermore, Tesla is losing in terms of revenue, recording just over $25 billion in sales compared to BYDโs $27 billion in the Sep 2024 quarter. That too when BYD has not started selling commercial cars in the USA. One point in Tesla's defense is that Tesla only sells pure electric vehicles, while BYD offers both electric and hybrid models. Also, BYDโs best-selling car is the Song Plus, a SUV available in both electric and hybrid versions. So This is the only defense Tesla can offer. Infact, in terms of pure EVs, Tesla still leads. Anyways, now the answer to how BYD achieved this? 1) They discontinued their internal combustion engine vehicles to focus solely on EVs. 2) Their focus shifted to selling affordable EVs rather than expensive models like those of Tesla. 3) They also focused on producing hybrid cars, which offer greater range and become a better choice for customers. 4) Lower manufacturing costs in China. Honestly, I don't know how Tesla is gonna compete with BYD. What do you think?
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