According to statistics from Late Finance BYD make an average net profit of 9,000 yuan per car, that’s about 1,250 USD. Tesla on the other hand made over 8,250 USD per car based on net profit of 14.9 billion dollars and sales of 1.81 million cars in 2023. What this clearly shows is that BYD is going after market share rather than profits.
Here is a link to BYD EV models:
Cheapest is $11,400. Most expensive $150,666.
5 models in $11,400 to $20,000 price range.
4 models in $20,000 to $30,000 price range.
3 models in $30,000 to $40,000 price range.
5 models in $40,000 to $50,000 price range.
1 model $78,000
1 model $150,666
What strikes me is the large number of models and wide price range. They have 8 new BYD models coming to the market in 2025.
Methinks Tesla needs to be pushing their new $25K model toward production ASAP. And we need more info on that new model. Will it just be a smaller model 3 with savings done via less metal and smaller battery pack?
Do Tesla’s offerings need to be updated? I know Tesla constantly does software updates. But what about body shapes?
It’d be easy to look at photos of the newly updated Tesla Model 3 and think,meh, not much has changed . Indeed, the new 3 qualifies as a heavy refresh, not an all-new design, meaning it carries over the 3’s batteries and motors from before, along with all of its hard points. But that lies beneath a freshened skin and seriously revised interior loaded with better materials and even more tech.
Such tactics are typical among Chinese businesses where a race to the bottom, winner takes all mentality pervades. Good examples have been bicycle sharing schemes, food delivery and to a lesser extent ride hailing schemes. All initially had multiple entrants who then undertook huge discounting and promotions in order to gain market share. With bicycle sharing this largely whittled the competition down to two companies Ofo and Mobike. The result though was that due to relentless competition they had created a business model that was not profitable and neither company exists anymore, although there are still a handful of bicycle sharing companies.
I dunno if the above is true or not. But it is something that a China competitor must keep in mind.
Another trend EV makers need to keep in mind:
China’s less expensive models are smallish in comparison to other nations offerings. So less metal and smaller battery packs are part of the reason for low entry price point. Many US potential buyers would reject due to size. But I suspect there is a market for them to lower income & younger buyers within USA.
EV sales in China market space is still growing but is slowing.
https://www.msn.com/en-us/money/markets/chinas-first-quarter-ev-sales-growth-slowest-in-a-year/ar-BB1lkWsx
China’s first-quarter EV sales growth slowest in a year
BYD dominates that market space–36.6% market share.
Tesla is #2 at 8.8%.
With the advent of new models and new technology coming online in the next few years I foresee great changes in the EV market and change in ranking of EV makers and more EV makers disappearing from the market space. My crystal ball is fuzzy–so no predictions on how it shakes out.