If you are interested in $TSLA, or Mercedes, or Ford, or any automaker, or just the industry in general, you need to get to know BYD. Time for a quick thread.
In terms of BYD and how their battery technology and EV offerings are competing on the world stage against traditional US manufacturers, industry guru Mike Dunne claims “we’re getting spanked.”
And I think he is right.
And I think he is right.
Turns out BYD is even spanking $TSLA. It looks like Tesla may produce and sell 1.7-1.9 million units globally this year. BYD is going to produce and sell almost twice as many.
Yet, many of us haven’t heard of BYD because they aren’t selling EVs in California.
But guess who heard about them 15 years ago, and had so much faith in CEO Wang Chuanfu that he invested $200 million in BYD - and by the middle of 2022, this $225 million was worth >$9 billion.
Yes, Warren Buffett is who. And while Berkshire has been taking money off the table since, they still have a $3 billion investment in the company.
Basically, BYD (aka “Build Your Dreams”) has hired top engineers from Audi, Mercedes Benz, and Ferrari, and quietly leapfrogged everyone to become the largest EV manufacturer in the world.
Here in 2023, BYD will not just produce and sell over three million vehicles, they will produce and sell more than three million EVs.
And BYD runs the gamut of price points for consumers, and already has models addressing nearly all main segments of automobile customer demand.
The e-series offers a sub-compact “city car”, a compact sedan, a compact hatchback, a compact MPV, and a mid-size sedan.
The Dynasty Series offers the Qin (another compact Sedan), the Yuan subcompact crossover SUV, the Song compact SUV, the Han mid-size luxury vehicle, and the Tang mid-size SUV.
The Ocean Series sports a subcompact (the Dolphin, or Atto 2) and the Seal compact sedan (aka the Atto 4), the Seagull city car, the Sea Lion compact crossover, the Destroyer compact and mid-size sedans, the Frigate compact crossover and mid-size SUV and the Landing Ship MPV.
Any BYD is launching some pretty impressive new models as well, including the Yangwang U8 luxury SUV, and the U9 Ferrari/Lambo competitor.
So that's >20 different models, with price points between $12,000 and $80,000 (even higher with the U9).
I’ve long argued that this is a recipe that Tesla will have to follow if it ever wants to sell 10 million, let alone 20 MM vehicles in a single year, and I still believe it.
I’ve long argued that this is a recipe that Tesla will have to follow if it ever wants to sell 10 million, let alone 20 MM vehicles in a single year, and I still believe it.
China is now the largest EV market in the world, but BYD hasn’t just exploded there. They are now selling (or starting to this year) in Mexico, Germany, Japan, Australia, and Thailand.
They have 288,000 employees globally. GM and Ford each have about 170,000, Tesla has 70,000.
They have 288,000 employees globally. GM and Ford each have about 170,000, Tesla has 70,000.
As I mentioned to @EmmetPeppers and @MatchasmMatt on their Good Soil podcast last month, I remember the 1970s when my WWII veteran grandfather called Japanese cars “glorified golf carts”. After which they took over the world.
youtu.be
youtu.be
Is it at all possible that some, or even many of us, will be driving Chinese cars by 2030?
So I don’t think we should be surprised to see BYD enter the US market within the next 3-5 years, perhaps via Mexico (or through acquisition of brands).
As Dunne points out in this excellent podcast, 80% of Buicks today are now sold in China, so maybe BYD should do a Volvo or an MG and start selling cars in the US with a familiar brand.
podcasts.apple.com
podcasts.apple.com
In any event, and to be clear, this is not a pro- $TSLA anti-traditional automaker thread, nor is it a $TSLAQ post, it is just a post about a competitor that could eat everyone’s’ lunch.
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