“Discover the World’s Hottest Car Company: Why You Can’t Buy Their Cars in America” | CNN Business

In the competitive world of electric vehicles (EVs), a Chinese company named BYD is rapidly catching up to Tesla, and it’s making significant strides.

BYD, based in Shenzhen, outperformed Tesla in vehicle sales last year, selling more than 4 million vehicles. Recently, they introduced a groundbreaking battery technology that can provide an extra 250 miles of range in just five minutes. In comparison, Tesla’s Superchargers only add 200 miles in about 15 minutes. They also launched “God’s Eye,” an advanced driver-assistance system that competes with Tesla’s features, typically at no extra cost to customers.

Industry experts notice that BYD is not slowing down. “They are pushing the envelope to lead the EV market,” says Tu Le, who leads the consultancy firm Sino Auto Insights. With a strong grip on the Chinese market, BYD is now eyeing global expansion, though it still faces a 100% tariff barrier to the U.S. market.

Founded in 1995, BYD started out as a battery manufacturer. The company has grown to dominate China’s new energy vehicle market, holding a remarkable 32% share in 2024 compared to Tesla’s 6.1%. This illustrates a stark difference between their business approaches: while BYD produces both fully electric and hybrid vehicles, Tesla focuses solely on battery-powered cars.

Recent statistics show BYD generated $107 billion in revenue for 2024—about 29% more than the previous year. Tesla, in contrast, earned $97.7 billion and reported its first annual decline in vehicle deliveries since its inception, selling just 1.79 million units.

The availability of affordable EVs sets BYD apart. Its entry-level models start at around $10,000 in China, far cheaper than Tesla’s base Model 3, which exceeds $32,000. This pricing strategy allows BYD to attract a broad customer base, making clean-energy cars accessible to more people.

While BYD has yet to break into the U.S. passenger vehicle market, it already operates electric buses in California. The company’s founder, Wang Chuanfu, has a compelling backstory. Orphaned at a young age, he worked hard to succeed, eventually establishing BYD with just 20 employees and a loan from a relative.

Wang’s focus has always been on technology, particularly batteries. He firmly believes that mastering battery technology sets the course for the entire EV industry. BYD has innovated with designs like the blade battery, which maximizes space and lowers fire risks in the event of damage.

As BYD pushes forward, challenges remain—especially in navigating new markets. Analysts suggest that while BYD may dominate now, geopolitical tensions and operational hurdles in different countries could complicate its expansion.

Despite these challenges, the future looks promising for BYD. Analysts predict that the company will continue to innovate and grow, maintaining its leadership in the electric vehicle landscape. As one expert noted, "They’re just starting."

For more on the current state and future of electric vehicles, check out the International Energy Agency’s report.

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