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.
China NEV Jan insured units
✴️Wuhan
?BYD Song+ DM-i
✴️Suzhou
?Tesla Model 3
✴️Xi’an
?BYD Song+ DM-i
✴️Nanjing
?Tesla Model Y
(DONGCHEDI) https://t.co/J9JQZ3Dk3q pic.twitter.com/bKcIv3FuEm— Moneyball (@MoneybaII_R) February 16, 2023
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.
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!
News
Tesla is launching a crazy new Rental program with cheap daily rates
This week, Tesla launched its in-house Rental program that will give people a vehicle for between three to seven days, with prices varying and starting at just $60 per day.
Tesla is launching a crazy new Rental program with cheap daily rates, giving people the opportunity to borrow a vehicle in the company’s lineup with an outrageous number of perks.
This week, Tesla launched its in-house Rental program that will give people a vehicle for between three to seven days, with prices varying and starting at just $60 per day.
However, there are additional perks that make it a really great deal, including Free Supercharging and Free Full Self-Driving (Supervised) for the duration of the rental.
There are no limits on mileage or charging, although the terms do not allow you to leave the state you are renting.
Tesla wrote in an email advertising the program:
“Rent a Tesla and see how it makes every errand, commute, and road trip more fun. While it’s yours, try Full Self-Driving (Supervised) and control and monitor your vehicle with the Tesla app.
Schedule your rental for three to seven days starting at $60 per day (plus taxes and fees) and charge for free at any Tesla-owned Supercharger.
Order your own Tesla within seven days of your rental to get up to a $250 credit toward your purchase.”
This is a great opportunity that will convince MANY people to make the jump.
All your concerns about switching are answered within two days. It’s easier than owning a gas car ever has been. https://t.co/QayTf6YVbw pic.twitter.com/TCHqfTRpes
— TESLARATI (@Teslarati) November 8, 2025
Tesla has long adopted the mentality that butts in seats will sell cars, and for the most part, it is a great strategy. Driving a Tesla is different from owning and driving a combustion engine vehicle; it truly feels as if you are in a car from the past when you get back in an ICE car.
This strategy could be looked at as more of a way for people to experience Tesla ownership than anything.
Although some might use it as a typical rental program that will see it be a cool way to drive without putting miles on a personal car, most will use it as the 48-hour test drive was designed for, which is a short-term way to experience EV ownership.
Tesla is only offering this program at a handful of locations currently, including San Diego and Costa Mesa, California.
News
Tesla makes online ordering even easier
Tesla has a great trade-in program that allows you to give the company your vehicle in exchange for cash, even if it’s not an EV. Their trades are mostly fair, but the company seems to undervalue its own vehicles, and there have been plenty of complaints over offers in the past.
Tesla has adjusted its Online Design Studio to make for an easier trade-in process, reflecting the details of the exchange for a more accurate reflection of payment terms.
Tesla has a great trade-in program that allows you to give the company your vehicle in exchange for cash, even if it’s not an EV. Their trades are mostly fair, but the company seems to undervalue its own vehicles, and there have been plenty of complaints over offers in the past.
Trade-ins are usually given by submitting vehicle details, then Tesla sends an email with an offer. Offers are non-negotiable, but do adjust over time, although the latest offer is valid for 30 days.
I traded my ICE vehicle for a Tesla Model Y: here’s how it went
Knowing your new Tesla’s cash price, leasing or loan details, and monthly payment information used to be done by the car buyer. From personal experience, I simply subtracted my trade-in from the cash price of the Tesla Model Y, and I plugged those numbers into the payment calculator.
Now, Tesla is implementing the trade-in process directly into the Design Studio. It will adjust the price of the car and the different monthly payment methods automatically:
Trade-in estimates available directly on our configurator in few states including CA, will cover all of US and Canada next week.
For loyalty customers, if their trade-in VIN is eligible for any loyalty credit, the same will be applied to the estimate. pic.twitter.com/7097vPleMf
— Raj Jegannathan (@r_jegaa) November 8, 2025
The change is already noticed in a handful of states, including California, but it has not rolled out across the board quite yet. It will be implemented in all of the U.S., as well as Canada, this coming week.
The trade-in process is very simple, and after you accept your offer, you simply drop your vehicle off during the delivery process. Making this simple change will be greatly appreciated by owners.
News
Tesla confirms Robotaxi is heading to five new cities in the U.S.
After launching in Austin, Texas, in late June and the Bay Area of California just a few weeks later, Tesla has been attempting to expand its Robotaxi suite to new states and cities in the U.S., and even outside of the country.
Tesla Robotaxi will hit five new cities in the United States in the coming months, the company confirmed.
After launching in Austin, Texas, in late June and the Bay Area of California just a few weeks later, Tesla has been attempting to expand its Robotaxi suite to new states and cities in the U.S., and even outside of the country.
The Robotaxi suite is a ride-hailing service Tesla offers, but the details of it change with each jurisdiction, as regulations vary. For example, in Austin, Tesla can operate the Robotaxi suite without anyone in the driver’s seat, as long as the vehicle does not enter a freeway.

Credit: Tesla
In the Bay Area, a Safety Monitor rides in the driver’s seat, essentially acting as the vehicle operator with Full Self-Driving controlling the car.
The local regulations and how Tesla handles them will continue to be a relevant part of the discussion, especially as the company aims to expand the Robotaxi program to different areas. This has been a primary focus of the company for several months, especially within the United States.
CEO Elon Musk said that Tesla was aiming to launch Robotaxi in Nevada, Arizona, and Florida. However, the company detailed five specific cities where it will launch Robotaxi next during the Annual Shareholder Meeting on Thursday.
Tesla will launch Robotaxi in Las Vegas, Phoenix, Dallas, Houston, and Miami next, broadening its Service Area for the suite to more major cities across the U.S.
It has said it plans to offer the service to half of the U.S. population by the end of the year, but it does not seem as if it will expand to more than a handful of cities this year, which is still tremendous progress, all things considered.
As far as autonomy is concerned, Tesla has always had lofty expectations and has made some even loftier statements.
At the Shareholder Meeting, Musk said that the company would likely be able to enable vehicle owners to text while the vehicle drives, alleviating them from potentially having some of the responsibility they have behind the wheel.
Tesla says texting and driving capability is coming ‘in a month or two’
It is not confirmed that Tesla will roll this out in the next few months, but Musk said there is a possibility.
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