Connect with us
Tesla-china-insurance-registrations-march-2023 Tesla-china-insurance-registrations-march-2023

News

Charlie Munger argues Tesla is losing to BYD in China

Credit: Tesla Asia/Twitter

Published

on

Well-known Berkshire Hathaway fund manager Charlie Munger argues that BYD is beating Tesla in China, but the actual market situation seems more complex.

Besides being incredibly well known for his investment prowess at Berkshire Hathaway alongside Warren Buffet, Charlie Munger is known for his massive investment into BYD. Under his and Buffet’s leadership, Berkshire Hathaway invested in BYD over a decade ago, and since then, its holding has exploded in value. Berkshire has made over 600% gain on that single investment. In an interview with CNBC, Munger argued that the Chinese automaker is dominating its American counterpart, Tesla, in China.

“Tesla last year reduced its prices in China twice. BYD increased its prices. We are direct competitors. BYD is so much ahead of Tesla in China … it’s almost ridiculous,” Munger told CNBC, and he has a point. Thanks to its massive number of affordable offerings, BYD constitutes most of the Chinese EV market. However, other factors show that this competition is far less one-sided than first meets the eye.

First, despite its wide range of offerings, BYD consistently trades with Tesla’s vehicles for the top-selling vehicle month to month. Most recently, this has been seen in markets such as Wuhan, Suzhou, and Nanjing.

Perhaps the most interesting aspect of these statistics is that Tesla’s far more premium vehicles, a typically less popular segment, are still keeping up with BYD’s more affordable offerings, including the BYD Song+ DMi.

As for the pricing mentioned by Munger, while it is true that Tesla likely lowered prices in order to become more price competitive with brands like BYD, NIO, and Xpeng, it seems as though this has resulted in a swing in popularity towards Tesla in the final quarter of last year.

Globally, BYD has been going toe to toe with Tesla’s sales numbers, which is certainly a remarkable accomplishment considering the brand has only recently begun to escape the Chinese market. In 2022, BYD sold a total of 911,140 pure electric vehicles to Tesla’s 1.31 million sales.

Despite the apparent rivalry between Tesla and BYD, both companies have made it clear who the real competitor is, the gas vehicle. And while Tesla has met its Chinese match with BYD, the remarkable success of rapid electrification in China has undoubtedly been a group effort. Hopefully, this ongoing rivalry will lead to an ever-better set of products and prices for consumers as they transition to electric vehicles in China and around the world.

Advertisement
-->

What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!

Will is an auto enthusiast, a gear head, and an EV enthusiast above all. From racing, to industry data, to the most advanced EV tech on earth, he now covers it at Teslarati.

Advertisement
Comments

News

Tesla launches hiring for Robotaxi program in its twentieth country

Overall, the hiring signals Tesla’s aggressive timeline for global dominance in autonomous mobility.

Published

on

Credit: @AdanGuajardo/X

Tesla has launched a hiring initiative for its Robotaxi program in its twentieth country, as the company posted two new jobs in Thailand this week.

Tesla is hiring in Bangkok and Kowloon for the Vehicle Operator position, which is related to data collection, and is the first in Thailand, but the twentieth country overall, as the company tries to expand into other markets.

Tesla has had active job postings for Vehicle Operator positions in the United States, India, Israel, Taiwan, Germany, the Czech Republic, Hungary, the UK, Finland, Switzerland, Sweden, the Netherlands, Austria, Spain, Norway, Italy, and Turkey in past listings.

Advertisement
-->

These postings are not all currently available, likely because the roles have been filled.

Thailand is the most recent, and broadens the company’s potential path to expanding its ride-hailing program, which is only active in the United States in Austin, Texas, and the California Bay Area, so far.

These roles typically involve data collection, which assists in improving Autopilot and Full Self-Driving operation. Tesla’s self-driving programs utilize real-world data that is accumulated and stored, observing vehicle and traffic behavior, as well as tendencies that are performed by human drivers to help increase safety and overall performance.

Overall, the hiring signals Tesla’s aggressive timeline for global dominance in autonomous mobility. Although the company has several high-profile rivals and competitors in the field, it has established itself as a main player and a leader in the development of autonomous technology, especially in the U.S., as its FSD suite is refined on almost a weekly basis.

The Full Self-Driving suite is available in seven countries and territories currently, including the U.S., Canada, China, Mexico, Puerto Rico, Australia, and New Zealand. Its biggest goal for expansion is currently the European market, where regulatory hurdles have been the main bottleneck prolonging its launch on the continent.

Advertisement
-->

Tesla has performed months of testing in various European countries, including France and Spain, and does have support in some areas from various regulatory agencies. However, the company is hoping to get through this red tape and offer its suite in Europe for the first time, hopefully this year.

Continue Reading

News

Tesla China rolls out Model Y upgrades, launches low-interest financing

These strategies are aimed at improving the ownership experience and keeping vehicle pricing competitive in the world’s largest electric vehicle market.

Published

on

Credit: Grok Imagine

Tesla has rolled out minor updates to the five-seat Model Y in China, upgrading the vehicle’s center display to a higher-resolution 16-inch 2K screen. The electric vehicle maker also introduced attractive financing options, including 7-year low-interest rates, to offset the new purchase tax on EVs. 

These strategies are aimed at improving the ownership experience and keeping vehicle pricing competitive in the world’s largest electric vehicle market.

Five-seat Model Y gets larger, better display

With its recent update, all three variants of the five-seat Model Y now feature an upgraded 16-inch 2K resolution center display, which replaces the vehicle’s previous 15.4-inch 1080p panel. This screen was already used in the six-seat Model Y L, and it offered improved visual clarity. Tesla China has also updated the Model Y’s headliner to black, giving the vehicle a sleeker appearance.

Prices of the five-seat Model Y remain unchanged at RMB 263,500, RMB 288,500, and RMB 313,500 for the respective trims. This update enhances the cabin experience as domestic rivals are already adopting high-resolution screens. As noted in a CNEV Post report, some domestic automakers have begun rolling out vehicles equipped with 3K-resolution displays. 

New financing offers

Tesla also launched ultra-long-term financing offers for its locally produced models in China, which include the Model 3 sedan, the five-seat Model Y, and the six-seat Model Y L, through January 31, 2026. The 7-year option features an annualized fee rate as low as 0.5%, which is equivalent to 0.98% interest. This is expected to save customers up to RMB 33,479 ($4,790) compared to standard rates.

Advertisement
-->

A 5-year zero-interest plan is also available, and it has been extended to the Tesla Model Y L for the first time. These incentives help offset China’s new 5% purchase tax on New Energy Vehicles (NEVs) in 2026-2027. Some of Tesla’s rivals in China have announced in recent months that they would be covering the purchase tax owed by buyers early this year. 

Continue Reading

News

Tesla Model Y’s new feature lands driver in hot water from police officer

“He gave me a warning and told me to get it fixed.”

Published

on

Credit: Grok

Tesla Model Y received a slew of both interior and exterior upgrades when the company refreshed its best-selling vehicle last year.

However, one of the more notable changes from an exterior perspective landed a driver in hot water with a local police officer, who was confused about the situation with the taillight bar and its ability to alert other drivers of a reduction in speed.

The new Tesla Model Y taillight with taillight glow

A Tesla Model Y owner in Indiana recently noted in a Facebook post that he was pulled over because a police officer thought the vehicle’s taillights were not turned on. However, the Model Y’s new rear light bar, which spans across the entire width of the vehicle, is more than visible in both light and dark conditions.

The incident, which was first spotted by Tesla Oracle, brings to light the interesting changes and perception of vehicle design that Tesla has brought forth with the new Model Y. We know some things might be head-scratching to some drivers, notably the Matrix Headlight technology present on the car, but this one truly baffled us.

The post stated:

“Just got pulled over for my tail lights not being “on” i told the officer it’s brand new. It has 1100 miles. I told him the red light bar is the taillight. The brake lights, both turn signals, and the red bar was on/worked. He told me that where the brake lights are, it should be illuminated there also. He gave me a warning and told me to get it fixed. Had anyone else had this kind of issue?”

Having the police officer tell a driver to “get it fixed” when it is a completely legal and functional design is pretty crazy.

However, the rear taillight bar, which glows and really gives the new Model Y a distinct difference between its previous iteration, is more than recognizable as a brake light and an indication of a reduction in speed.

Regulatory language for vehicle designs indicates that the light has to reach a certain number of lumens, or brightness. Lars Moravy indicated this on an episode of Jay Leno’s Garage when he and Tesla Chief Designer Franz von Holzhausen explained some of the details of the new Model Y.

This issue sparks some interesting dialogue people can have about vehicle design, and as more and more companies are adopting these futuristic looks, it seems law enforcement will have to get with the times and familiarize themselves with the regulations regarding exterior lights.

Continue Reading