BYD: Another Factor Undermining Tesla
Tesla: Lots of buzz, many overpromised commitments from the owner, frequent delivery shortfalls, disappointing numbers, and project delays.
BYD: Announces new products and features when they are ready and released, not when the idea is years away from fruition. Delivers on what it promises to the market. No wonder Buffett chose one company over the other.
FT reports that the second shocking announcement from the Chinese automaker in a year could put the rest out of business. Wang Chuanfu, the billionaire founder of the BYD group, unveiled a new charging system that can boost the range of its BYD batteries to 470 km in just 5 minutes. The release of the Super e-Platform positions BYD as a leader in the industry race to develop EV power components that allow them to be refueled as quickly as gasoline or diesel cars. This follows the February announcement that the advanced driver assistance system “God’s Eye” will be installed for free on all company models.
On the advantages
◼️ The charging power of BYD’s platform is 1,000 kilowatts, and the current strength reaches up to 1,000 amperes. This means it can charge batteries at a speed of approximately 2 km per second, extending the range by 400 km in five minutes. The technology release implies that BYD has overcome several hurdles to ultra-fast charging, including safety risks, battery life reduction, and additional costs associated with installing ultra-fast chargers.
◼️ It will address consumer complaints that EVs, compared to traditional internal combustion engine vehicles, take too long to charge and alleviate range anxiety during long trips. Shay Natarajan, a partner at private equity fund Mobility Impact Partners, says BYD uses a more sophisticated battery cooling system compared to Western automakers.
Regarding competitors
◼️ Tesla’s charging network is one of the largest in the world and has long kept the company at the forefront of EVs. However, its network capabilities do not match what BYD promises. Currently, it allows Tesla to charge up to 200 miles (320 km) in 15 minutes (following BYD’s announcement, Tesla’s stock price fell by more than 5%).
◼️ Among other automakers, German Mercedes-Benz recently unveiled its new fully-electric compact sedan CLA, which can be charged up to 325 km in 10 minutes using a fast-charging station. A new type of battery released by competing BMW also promises 30% faster charging, but even so, a 10-minute charge yields just 300 km.
◼️ BYD’s likely main competitor is the Chinese battery giant CATL. Last year, the group unveiled its Shenxing Plus battery with a charge time equal to 1 km of range per second, or 600 km in 10 minutes. Analysts expect BYD’s competitors to achieve a similar charging speed in the coming years, suggesting ultra-fast charging will become more common in Europe and the US by around 2030.
On the global auto industry
◼️ The Super e-Platform emerged just weeks after BYD announced the release of the God’s Eye program, which will be offered for free even in the cheapest cars — substantially increasing pressure on automakers.
◼️ Unlike any other, BYD boasts intellectual property on all EV technologies, batteries, and charging systems, meaning integration can be “much simpler and cleaner” than the remainder of the sector. Tu Le, founder of Sino Auto Insights, explains simply:
“The ability to offer these technologies in mass-market vehicles is the undeniable difference between BYD and everyone else. BYD is likely to drive several global brands out of business.”