Jackie Snow
As Tesla CEO Elon Musk announced plans last week to scale back his government work, the relief among investors was palpable. Tesla’s stock jumped despite weak revenue and declining deliveries. But this momentary reprieve masks a deeper existential threat facing Tesla and other American automakers: China’s BYD is coming for their lunch — and showing few signs of slowing down.
While American automakers struggle, BYD is aggressively expanding beyond China with superior technology and impressive sales growth. The Chinese automaker has developed a breakthrough “Super e-Platform” that enables adding 250 miles of range in just five minutes of charging, roughly four times faster than Tesla’s capabilities.
While the sales aren’t quite four times higher, BYD’s growth rate far outpaces Tesla’s. It sold more than 400,000 electric cars, keeping it ahead of Tesla as the world’s top EV brand. The company’s latest financial results are striking: First-quarter revenue jumped 36.35% year-over-year to $23.5 billion, while net profit doubled, increasing by 100.38% to $1.26 billion.
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