Elon Musk admits BYD cars ‘are highly competitive these days’ after 2011 clip shows him laughing at the rival now trouncing Tesla in China

[艹艹艹]

Elon Musk admits BYD cars ‘are highly competitive these days’ after 2011 clip shows him laughing at the rival now trouncing Tesla in China ​

May 28, 2023 at 1:50 AM GMT+8

Elon Musk paid respects to a Tesla rival yesterday. But it was in response to a 2011 video of him laughing at its vehicle quality.

The Tesla CEO responded Friday to a Bloomberg interview in which he derided China’s BYD. As the interviewer mentions the Chinese company as a competitor and notes Berkshire Hathaway’s 10% stake, Musk can’t stop laughing. When asked why he’s chortling, he responds, “Have you seen their car?” He then admits he doesn’t see BYD as a competitor.

https://twitter.com/x/status/1662294768049696769

In April, BYD reported that its profits had surged over 400% in the first quarter from a year earlier, and that its vehicle sales had nearly doubled to 550,000 globally in the quarter. The EV maker has ousted Volkswagen as the best-selling brand among automakers in China—a key market for Tesla—and it’s pushing into Europe, Latin America, and Asian markets. It’s also dominating Tesla in China.

“That was many years ago,” Musk said of the video clip, posted by Tesla Owners Silicon Valley. “Their cars are highly competitive these days.

Others agree.

“BYD is very, very strong,” Volkswagen CEO Oliver Blume said in Shanghai last month.

And this week, Ford CEO Jim Farley mentioned BYD while explaining that Ford’s main EV rivals are Chinese companies, not GM or Toyota. “The Chinese are going to be the powerhouse,” he said at the Morgan Stanley Sustainable Finance Summit.

“BYD is so much ahead of Tesla in China, it’s almost ridiculous,” Berkshire Hathaway vice chairman Charlie Munger said earlier this year. Warren Buffett’s right-hand man added, “I have never helped do anything at Berkshire that was as good as BYD.” Munger was behind the conglomerate’s decision to invest in the fledgling Chinese carmaker in 2008.

That same year, Musk had lunch with Munger, saying Berkshire Hathaway should invest in Tesla. Munger declined, and indeed Berkshire has largely steered clear of automakers over the decades.

“Charlie and I for long have felt that the auto industry is just too tough,” Buffett explained earlier this month at Berkshire Hathaway’s annual conference. But they placed a bet on BYD.

In the first quarter, BYD had nearly 40% of the market among new energy vehicle makers in China, according to Bloomberg, compared to just over 10% for Telsa, a distant second. Tesla earlier this year initiated a price war against BYD in China.

Musk was laughing about BYD three years after Munger’s investment.

“I don’t think they have a great product,” Musk continues in a longer version of the 2011 Bloomberg interview posted on YouTube. “I don’t think it’s particularly attractive. The technology is not very strong. And BYD as a company has pretty severe problems in their home turf in China. So I think their focus is, and rightly should be, on making sure they don’t die in China.”

It’s safe to say that BYD did not die.

 

[theBill]

You ever tried driving a Tesla? American cars have terrible handling.. I would think the Chinese cars would perform like the American cars but this review says otherwise.

I don't think anyone outside these Chinese companies, knew that China would become such a monster car manufacturer.

 

[Hamartia Antidote]

You ever tried driving a Tesla? American cars have terrible handling.. I would think the Chinese cars would perform like the American cars but this review says otherwise.

I don't think anyone outside these Chinese companies, knew that China would become such a monster car manufacturer.

We'll see how well the new XPeng P7i (with the swing up doors) finally does as XPeng itself is doing miserably as Chinese citizens don't like their cars..including the P7 (which started delivery in 2020)

Xpeng delivers 7,079 vehicles in Apr, largely flat from Mar

The P7i, which was launched in March, continues to gather strong order momentum and the company is significantly ramping up production, which will accelerate customer deliveries in the near future, Xpeng said.

cnevpost.com

This is the third consecutive month-on-month gain in monthly XPeng deliveries, after about a year of weak sales.

the original P7 review two years ago (regular doors). It wasn't flying off showroom floors...even with its city self-driving capabilities touted as rivaling Tesla's (Xpeng NGP)

@theBill say as much as you'd like but Chinese citizens are voting with their wallets (instead of their egos) as the Tesla Model Y is still the #1 selling 100% EV in China (note the BYD Song has both its dark red hybrid and light red BEV numbers in the bar)

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Again Elon Musk makes it into the history books:

Tesla Model Y is the first electric vehicle to be the world’s best-selling car

For the first time ever, an all-electric vehicle — the Tesla Model Y — is now the world’s bestselling car.

www.marketwatch.com

 

[Menthol]

BYD and Tesla despite both are EVs, but they have different market segments.

Tesla is more upscale, more like BMW, Mercedes Benz, and Lexus kind of level in gasoline powered car market.

While BYD is more like Toyota, VW, Ford, etc kind of level.


In terms of sales, probably in the future BYD will win over Tesla. But in terms of prestige, Tesla will always be above BYD.

Both are incomparable.

 

[FuturePAF]

To be fair, BYD has had 12 years to improve their cars knowing Tesla is the leader and Elon Musk basically threw down the gauntlet.

BYD had to win “Face”, and with that tweet, Elon gave them a major victory.

 

[F-22Raptor]

BYD and Tesla despite both are EVs, but they have different market segments.

Tesla is more upscale, more like BMW, Mercedes Benz, and Lexus kind of level in gasoline powered car market.

While BYD is more like Toyota, VW, Ford, etc kind of level.


In terms of sales, probably in the future BYD will win over Tesla. But in terms of prestige, Tesla will always be above BYD.

Both are incomparable.

Tesla will soon compete in the $20-30K segment by 2024-25. They teased the model recently.

 

[tower9]

China had tremendous foresight over a decade ago to focus on EVs. Now it completely dominates the global EV supply chain. It is indispensable for any EV manufacturer regardless of whether they are a Chinese or foreign brand.

 

[Hamartia Antidote]

To be fair, BYD has had 12 years to improve their cars knowing Tesla is the leader and Elon Musk basically threw down the gauntlet.

BYD had to win “Face”, and with that tweet, Elon gave them a major victory.

It's even longer than that. BYD was offering a 100% family EV back in 2009 even before Tesla unveiled the high-end Model S prototype...nevermind years later with the Model 3 and Y.

BYD in January 2009

Tesla in April 2009

It was BYD that dropped the ball. They could have had an EV monopoly even before Tesla rolled out their first production Model S. However they couldn't pull it off. Their first cars ended up in taxi fleets instead of in consumer hands. Maybe with everybody in apartment buildings consumer easy access to charging was a hindrance to quick adoption in China.

 

[FuturePAF]

It's even longer than that. BYD was offering a 100% family EV back in 2009 even before Tesla unveiled the high-end Model S prototype...nevermind years later with the Model 3 and Y.

BYD in January 2009

Tesla in April 2009

It was BYD that dropped the ball. They could have had an EV monopoly even before Tesla rolled out their first production Model S. However they couldn't pull it off. Their first cars ended up in taxi fleets instead of in consumer hands. Maybe with everybody in apartment buildings consumer easy access to charging was a hindrance to quick adoption in China.

China can build out parking garages with charging stations next to those apartment buildings.

BYD caught up just in time for the big push for EV adoption. They didn’t need a monopoly they need a market. Having Tesla popularize EVs actually great the market they want to seize

 

[Hamartia Antidote]

China can build out parking garages with charging stations next to those apartment buildings.

BYD caught up just in time for the big push for EV adoption. They didn’t need a monopoly they need a market. Having Tesla popularize EVs actually great the market they want to seize

 

[FuturePAF]

View attachment 932178

They will probably try to follow the well worn path of the Japanese and then the Koreans.

I’m not saying I’m gonna stopping buying something like a Corolla to buy a BYD next year, but if their quality can hold up to be as durable as a Corolla and be cheap enough as well, I might buy it.

For me a car is like a microwave, especially because I live in New York where we can’t have nice things because of the crime. Maybe I’ll change my mind when I move out of the city.

I went to the auto show a few weeks ago and the cars just look over priced. Nice bit overpriced. I rather buy investments then a depreciating asset, like a car.

 

[theBill]

We'll see how well the new XPeng P7i (with the swing up doors) finally does as XPeng itself is doing miserably as Chinese citizens don't like their cars..including the P7 (which started delivery in 2020)

Why don't Chinese like these cars? Xpeng will most probably fail, then its share holder will cry. Xpeng is a demonstration of systems leadership & on-par handling with Europen cars.

Chinese citizens are voting with their wallets ...Tesla Model Y #1 selling 100% EV in China

100% EV is marketing to make something small look big. China sold 1.5 million electric/electrified vehicles Q1, a 100K so units is meagre. Chinese are voting with their wallets. Tesla's novel feature is to attract car buyers to EV, units sold matter at the end.

I actually like Elon, especially him clashing with the racidal left.

 

[Hamartia Antidote]

Why don't Chinese like these cars?

We have all heard the story about how if some arms supplier (whether it be US/Russian/Chinese) sells their latest and greatest weapon to some other country they tend to give them a de-tuned 'monkey" version with almost second-rate parts.

In China the opposite happens. The locals get the de-tuned consumer version and the one for export is the better one. At least that is the way it was perceived in the past.

So now you have an expensive car from a new Chinese EV company..and people are wary. They don't want to jump on something unless there is already a "proven safe bandwagon" to jump onto. With Tesla they know it is already sold worldwide so they can see the Tesla "bandwagon".

 

[Han Patriot]

We have all heard the story about how if some arms supplier (whether it be US/Russian/Chinese) sells their latest and greatest weapon to some other country they tend to give them a de-tuned 'monkey" version with almost second-rate parts.

In China the opposite happens. The locals get the de-tuned consumer version and the one for export is the better one. At least that is the way it was perceived in the past.

So now you have an expensive car from a new Chinese EV company..and people are wary. They don't want to jump on something unless there is already a "proven safe bandwagon" to jump onto. With Tesla they know it is already sold worldwide so they can see the Tesla "bandwagon".

Bro, anybody can claim anything, let the consumers choose, that's how markets work, if Tesla is good then they deserve it. China has never been afraid of competition, BYD grew becauze of Tesla. An open market only makes it better and I dare say China is a much more open market than US now. Can BYD get the same acc3ss as Tesla got in China? Can Huawei get the same access? After 2018, US is one of the most protected markets.

 

[Hamartia Antidote]

China has never been afraid of competition

it is far from just a US/China thing. You are certainly completely clueless about Chinese import tariffs.

European Auto Makers Face 2023 Profit Hit While Industry Seeks China Import Action

European auto profits will dive in 2023 as the recession kicks in and inflation bites. Mondial de l‘Automobile showed competition from China gathering pace and manufacturers want a level playing field. One investment bank expects overall profits to halve in 2023.

www.forbes.com

Europe imposes a 10% tariff on Chinese car imports, but vehicles going the other way pay between 15 and 25%.