China’s BYD Has No Plans to Challenge Tesla in US Anytime Soon

[Hamartia Antidote]

BYD at 2009 Detroit Autoshow Wang Chuanfu announces expansion into the US market..which has yet to happen 14 years later.

Now Wang Chuanfu announces he's kicking the can down the road yet again.

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Wang Chuanfu, chairman and chief executive officer of BYD Co., speaks during a news conference in Hong Kong, China, on Wednesday, March 29, 2023. BYD's profit more than quintupled last year after the Chinese automaker sold a record number of electric vehicles and stepped up its battle with Tesla Inc. for market share. , Bloomberg


(Bloomberg) -- BYD Co. doesn’t have any current plans to enter the US passenger car market, founder Wang Chuanfu said, throwing cold water on the prospect of the Chinese electric-vehicle maker challenging Tesla Inc. in its home market — for now.

The auto titan, which reported that net income more than quintupled last year after it sold a record number of EVs, said at a post-earnings briefing on Wednesday that its home market of China has already entered a “full-expansion phase” for new-energy vehicles.

The US is the next biggest EV market after China, where a price war has erupted between BYD, Tesla and other EV makers. Backed by Warren Buffett, BYD has been expanding its footprint overseas, including into Norway, Denmark, the UK, Thailand and Australia. Wang predicted that the development of clean-energy vehicles will lead to a reshuffling within the global auto industry.

Given that BYD isn’t entering the US passenger EV market for now, Wang doesn’t foresee any impact from President Joe Biden’s Inflation Reduction Act, which offers generous incentives for selling EVs but has stringent requirements on manufacturing and supply-chain sourcing. Final details of the legislation, which was passed into law last year, are due to be released on Friday.

BYD sold 1.86 million electric and plug-in hybrids in 2022, more than the previous four years combined. It accounted for about 30% of all new-energy vehicle sales in China, with half of them battery-only EVs. In comparison, Tesla delivered 1.31 million EVs globally.

BYD stopped producing cars powered entirely by fossil fuels last year.

 

[Zsari]

BYD at 2009 Detroit Autoshow announces expansion into the US market..which has yet to happen 14 years later.

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(Bloomberg) -- BYD Co. doesn’t have any current plans to enter the US passenger car market, founder Wang Chuanfu said, throwing cold water on the prospect of the Chinese electric-vehicle maker challenging Tesla Inc. in its home market — for now.

The auto titan, which reported that net income more than quintupled last year after it sold a record number of EVs, said at a post-earnings briefing on Wednesday that its home market of China has already entered a “full-expansion phase” for new-energy vehicles.

The US is the next biggest EV market after China, where a price war has erupted between BYD, Tesla and other EV makers. Backed by Warren Buffett, BYD has been expanding its footprint overseas, including into Norway, Denmark, the UK, Thailand and Australia. Wang predicted that the development of clean-energy vehicles will lead to a reshuffling within the global auto industry.

Given that BYD isn’t entering the US passenger EV market for now, Wang doesn’t foresee any impact from President Joe Biden’s Inflation Reduction Act, which offers generous incentives for selling EVs but has stringent requirements on manufacturing and supply-chain sourcing. Final details of the legislation, which was passed into law last year, are due to be released on Friday.

BYD sold 1.86 million electric and plug-in hybrids in 2022, more than the previous four years combined. It accounted for about 30% of all new-energy vehicle sales in China, with half of them battery-only EVs. In comparison, Tesla delivered 1.31 million EVs globally.

BYD stopped producing cars powered entirely by fossil fuels last year.

To establish a distribution network is very costly in the US. With the current political climate, its best for Chinese car companies to stay away from the US market altogether, as success would get them quickly banned anyway.

 

[Hamartia Antidote]

To establish a distribution network is very costly in the US.

Well somehow those Europeans, Koreans, and Japanese have pulled it off...maybe they aren't easy quitters.

With the current political climate, its best for Chinese car companies to stay away from the US market altogether, as success would get them quickly banned anyway.

 

[kankan326]

American market is too risky for Chinese companies.

 

[Yongpeng Sun-Tastaufen]

American market is too risky for Chinese companies.

It's also the reason the US cannot ban Chinese cars if China sells cars to Russia.

 

[beijingwalker]

American market is too risky for Chinese companies.

True, just check out Huawei and TIKTok, Now every Chinese business will have a long second thought about investing or expanding their businesses in US.

 

[Song Hong]

The most important technology of EV is battery. And Tesla is buying almost every single one of them from China.

 

[ARMalik]

My company Brought a BYD SUV for my division because it was light years ahead in terms of quality, gadgets, and 30% less price than anything Tesla could offer.

 

[Hamartia Antidote]

The most important technology of EV is battery. And Tesla is buying almost every single one of them from China.

Only because sales are so astronomical they can't build batteries fast enough...and only one version of one of the Tesla Model 3 in the US uses Chinese batteries.

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The Tesla Model 3 RWD’s battery pack is produced and assembled in China, reducing its qualifications for the IRA’s $7,500 EV tax credits. Under the US Treasury’s battery guidance, at least 50% of EV battery components must be produced and assembled within the United States or in a country with a free trade agreement.

I think they have 5 outside battery suppliers now. They have even restricted selling their home Powerwalls because they need every battery they can get.

Remember there are like 4,500 batteries in each car. That's alot of batteries for a non-battery company to make. They sold 1.2 million cars last year. 5 years ago they sold less than 200,000.

Edit: Actually it looks like they just re-opened up Powerwall 2 weeks ago after a 2 year restriction.

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Tesla has relaunched its Powerwall residential battery, two years after restricting sales of the product due to supply constraints. Customers can now purchase a stand alone Powerwall, which connects to solar panels and Tesla’s Solar Roof to store unused energy, for $9,200 through its...

www.theinformation.com

 

[beijingwalker]

The most important technology of EV is battery. And Tesla is buying almost every single one of them from China.

And the raw material to build them

 

[K_Bin_W]

My company Brought a BYD SUV for my division because it was light years ahead in terms of quality, gadgets, and 30% less price than anything Tesla could offer.

At the going price, I would not touch a Telsa with a 10-foot pole.

 

[That Guy]

It could be a fear of losing investments like with what happened with Huawei and what's happening currently with TikTok.

 

[Song Hong]

All EV are using AC motors, which is just a bunch of copper coil.

EV motors is the dumbest thing in modern industries.

Any high school student with a few meters of copper cable can make it.

 

[IblinI]

It could be a fear of losing investments like with what happened with Huawei and what's happening currently with TikTok.

He stated clearly in his speech that the company is planning expanding the business in Europe, Southeast Asia, West Asia, South America, and avoiding certain market for now and that's right, he used the term "avoid".
but the media used the word " no plan to challenge tesla" and the poster here added some more spice to suits his agenda...

 

[Hamartia Antidote]

He stated clearly in his speech that the company is planning expanding the business in Europe, Southeast Asia, West Asia, South America, and avoiding certain market for now and that's right, he used the term "avoid".
but the media used the word " no plan to challenge tesla" and the poster here added some more spice to suits his agenda...

Canada is not the US...and it has a bigger population than Australia...