China’s BYD has a ‘weapon’ that Tesla doesn’t have [CNBC Video] - Automobility
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07 Jun China’s BYD has a ‘weapon’ that Tesla doesn’t have [CNBC Video]

Posted at 21:46h in Media Mentions by

Click here to the Audio Link

 

31 MAY 2023

Bill Russo of Automobility says BYD is selling extended range hybrid vehicles, and “Tesla can’t even counter that move.”

Key take-aways:

  • Tesla is in the number 2 position but is struggling to maintain its share in China’s hyper-competitive NEV market. While they were the spark that ignited retail consumer interest in EVs since June 2020, Tesla’s models have aged in hyper-competitive EV market, and their backlog has been eliminated in the past year as competition offers newer well-contented models.
  • Overall production volumes at Giga Shanghai have been relatively flat for a year. Lack of demand growth in China, combined with added global capacity have created a situation where global capacity now exceeds demand for Tesla.
  • Giga Shanghai along with new global capacities face risk of underutilization – and this growing oversupply pressure triggered the recent price war.
  • Tesla claims to be leveraging its cost advantage to grow its share internationally, but results in China are decidedly mixed.

For further commentary, please see our latest State of China Auto Market Newsletter for May 2023

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