BYD Undercuts Tesla with Cheaper EVs in Emerging Markets
Summary
BYD, a Chinese automaker, is undercutting Tesla's electric vehicle (EV) prices in emerging markets by offering more affordable models with smaller battery sizes, leveraging its cost-effective production capabilities to gain a competitive edge over Tesla in regions like Latin America and Southeast Asia.
Key Points
- BYD's lowest-cost EV models are cheaper than Tesla's Model 3 in at least 10 non-Western countries/regions where both companies sell vehicles online.
- Tesla primarily focuses on sales in the U.S. and Europe, while BYD is expanding in Latin America and Southeast Asia.
- BYD's ability to produce EVs cheaply, especially with smaller battery sizes for its most affordable models, gives it a cost advantage over Tesla in many non-Western markets.