{ “title”: “BYD’s Battery Breakthrough: Is Tesla’s EV Dominance in Jeopardy?”, “description”: “A look at how BYD’s new battery technology is challenging Tesla’s position in the electric vehicle market.”, “tags”: “BYD, Tesla, electric vehicles, EV, Elon Musk, battery technology, Super E-Platform, China”, “rewritten_content”: “It was 2011, and Elon Musk was amused. In a television interview, the Tesla CEO was asked about the Chinese automaker BYD, a question that prompted laughter. “Why are you laughing?” the interviewer inquired. Musk responded, “Have you seen their car? I don’t think they have a great product.” At the time, Tesla had just gone public with a multibillion-dollar valuation and was preparing to launch the Model S, which would become the world’s best-selling electric car. Meanwhile, BYD was facing declining sales in China and was criticized internationally for allegedly copying car designs.
However, BYD had a distinct advantage in battery development. Founded in 1995 as a battery manufacturer, the Shenzhen-based company shifted its focus to automobiles in 2003—the same year Tesla was founded—with the goal of revolutionizing the auto industry through battery-powered cars that could rival fuel-powered vehicles.
The ‘Holy Grail’ of EV Charging
This month, BYD achieved what some industry experts hail as the “holy grail” for electric vehicles: a battery that can fully charge in the same time it takes to fill a petrol tank. The Super E-Platform offers a range of up to 400 kilometers (249 miles) with just five minutes of charging thanks to 1,000 kilowatt charge speeds. Most Tesla Supercharger stations have a maximum output of 250kW or less.
“The new charging performance blows the competition out the water,” Ryan Fisher, head of charging infrastructure research at BloombergNEF (BNEF), told The Independent. “It’s three to four times the charging power Tesla’s can consume, and the vehicles will be similarly priced in China as the Model Y.”
BYD announced that mass production of the new technology would “completely solve users’ range anxiety when travelling,” with plans to introduce the “flash-charge” battery in its Han L and Tang L models in China as early as next month.
Tesla’s Recent Setbacks
The news comes during a period of unprecedented decline for Tesla. The company’s valuation has dropped by more than half since December, and it is about to record its ninth consecutive week of falling share prices.
BYD has significantly contributed to this downturn, surpassing Tesla last year as the world’s leading electric vehicle manufacturer—a position Musk’s company had held since 2019.
The Chinese firm’s latest charging announcement caused Tesla’s stock to drop an additional 10%, with market analysts quickly pointing out that BYD would be delivering the technology to customers within months, unlike Tesla, which often takes years to deliver on Musk’s ambitious promises. (It has been nearly eight years since he announced the new Tesla Roadster, which has yet to enter production).
BYD’s substantial market share in China has also affected Tesla’s, with the US company experiencing a 49% year-on-year decrease in its Chinese shipments in February, despite soaring demand for electric vehicles.
Tesla sales are also falling in Europe, due to heightened competition and the actions of its CEO.
Brand Perception and Market Challenges
Musk’s connections to US President Donald Trump and his support for far-right politicians in Europe have negatively impacted Tesla’s brand. Following his apparent fascist salute during Trump’s inauguration celebrations in January, Tesla cars were quickly labelled as ‘Swasticars’ on social media, while the Cybertruck earned the nickname ‘W*nkpanzer’ in reference to Nazi-built tanks.
Protests have taken place outside Tesla showrooms and charging stations across the UK, Europe, and the US, alongside acts of arson and vandalism directly targeting Musk. Once loyal customers have joined calls for boycotts and switched to other automakers, leading to a freefall in sales across Europe. Data from market researcher Dataforce shows a 44% drop in Tesla registrations in February, following a 45% decrease in January.
However, while Tesla struggles with a damaged brand image, BYD faces challenges with brand recognition in foreign markets. Although BYD produces a vast number of vehicles, most are sold in China. Passenger vehicles are not even available for purchase in the US, and this is not likely to change due to Trump’s allegiance to Musk and his preference for tariffs.
There are BYD buses in the US, and you may have ridden one in London in the last decade, but the company has not replicated its domestic success in the passenger car market.
BYD may also face similar challenges to other Chinese tech companies such as Huawei and ZTE when expanding into foreign markets. More than a dozen countries worldwide have restricted or banned their products because of national security concerns. If such concerns arise regarding internet-connected electric cars, Tesla may be affected due to Musk’s control of the company.
BYD has not yet announced when its ultra-fast charging system will be available outside of China, but industry experts anticipate a rapid rollout.
“In the UK Tesla has been building its supercharger network for years. But BYD’s new chargers will incorporate battery storage which means they will require less grid connection to achieve such high power charging,” said BNEF’s charging infrastructure researcher Fisher.
“This could also enable the infrastructure to be rolled-out quicker if they do bring the car to the UK.”
BYD is already witnessing a surge in sales in Europe, with new car registrations up by nearly 700% in the UK last year, which could enable the company to take advantage of its industry-leading batteries by entering markets previously dominated by Tesla.
Musk’s company is now not only losing the brand battle, but also its technological dominance. And the scale of the battery breakthrough means BYD is not just taking on Tesla, but the decades-long dominance of combustion engine vehicles.
This aligns with Musk’s original goal for Tesla, which he stated in 2013 was to “the advent of sustainable transport.” So while he may no longer be laughing, he might at least afford himself a smile.
