Reasons why BYD is about to surpass Tesla

According to the World Economic Forum, China is the world's leading electric vehicle country, holding 64% of total production and 59% of global electric vehicle sales by 2022. One of China's largest electric vehicle manufacturers, BYD, is expected to overthrow the US company Tesla as the world's leading electric vehicle seller.

Figures reported by Bloomberg show that BYD sold just 3,000 fewer electric vehicles than billionaire Elon Musk’s company in the three months to September 30. Analysts say it is highly likely that BYD will surpass Tesla by the end of this year, which would be a major milestone for the global electric vehicle industry if it happens.

Tesla only sells four models, including the Model S, Model 3, Model X, and Model Y, priced between $40,000 and $100,000. Meanwhile, BYD focuses on affordable models, targeting a wide range of customers, first-time electric vehicle users, thereby helping to sell more cars.

This year, BYD debuted the Seagull at the Shanghai Auto Show, which costs around $10,000 and is the fourth best-selling electric car in China, according to Autovista24. BYD’s Song, Qin Plus, Dolphin, Yuan Plus and Han models also made the top 10 domestic electric cars. Tesla’s only representative on the list is the Model Y.

Chinese companies have also benefited from government support for the battery supply chain, along with efforts to build a domestic charging network. Batteries account for about 30% to 50% of the cost of an electric vehicle. Ilaria Mazzocco, a senior fellow at the Center for Strategic and International Studies in Washington, DC, previously told Business Insider that China has developed a significant advantage in this area, in part because it controls the supply chain needed to produce batteries.

According to a report by Morgan Stanley, an investment bank and financial services company in the US, up to 90% of the electric vehicle battery supply chain depends on China, while the two largest battery manufacturers in China, CATL and BYD, control more than half of the market.

Experts say the success of electric vehicles in China is also due to the dense charging infrastructure there. According to financial analyst Seth Goldstein of Morningstar, China has the largest network of highway charging infrastructure in the world, with an estimated 50 km of high-power charging stations along the highways, which helps drivers overcome the fear of running out of power, encouraging people to buy more electric vehicles.