BYD and other Chinese automakers have studied the European auto market for years. Now, it’s time to put their knowledge to the test and go all-in on the European auto market.
BYD’s strategy to take over Europe was recently revealed in a report by Reuters. The publication also shared details about how other Chinese automakers are entering the European market and their plans to beat top-selling brands like Tesla and Volkswagen in the EU’s local electric vehicle (EVs) market.
Below are the strategies BYD and Chinese automakers are implementing to deploy their vehicles in Europe.
- Understand European car consumers and their needs
- Improved marketing to increase brand awareness
- Expand dealership networks
- Build an extensive after-sales care service network, including improved service-and-repair operations.
- Protect resale values
The roads are buzzing with SUPER DM technology. The BYD SEAL U DM-i combines a range of more than 1000km with an attention to detail in every inch of its interior. It's the perfect synthesis of comfort and adventure.#BYD #BuildYourDreams #BYDSEALUDMi pic.twitter.com/gSNGtLzQV4— BYD Europe (@BYD_Europe) May 22, 2024
China Cars with Europeans in Mind
BYD and Chinese automakers have learned that adapting and importing cars from China to Europe is not enough. They have studied European car owners to understand the details they look for when purchasing a vehicle. As a result, some Chinese car brands have started designing cars from scratch for European buyers.
For instance, Chinese automakers have learned that safety ratings are important to European car owners, so they have improved their vehicles with safety as a priority.
“In China, the purchase price is important. But for European consumers, it’s not just price, but total cost of ownership, including maintenance, service, and residual values,” commented Bo Yu, JATO Dynamics’ Greater China Country Manager.
China-based car manufacturers are also strengthening and expanding repair-and-service operations to enhance after-sales care in Europe. Plus, they have started understanding the importance of resale values for European car owners.
“There are hard rules on issues like safety and that are clear, and then there are soft rules that aren’t written down. The Chinese are very eager to learn the soft rules,” said Ben Townsend, Head of Automotive at Thatcham.
Chinese Automakers’ Biggest Advantage
Electric vehicles have offered brands—both old and new—a chance to grow and expand in the transitioning auto market worldwide. Many automakers have not been phased by the EV market’s slowdown and are charging ahead in electric vehicle development. As such, EVs have become a good entry into the European market for China-based automakers.
Electric vehicles offer Chinese automakers one significant advantage in the global auto market: affordable prices.
China has also started to promote and grow its new energy vehicle (NEV) market, which includes battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). The Chinese government financially supports local car companies through subsidies and its ever-expanding EV supply chain. China is ahead regarding battery-minerals mining, a critical part of the EV supply chain that affects costs.
The local government’s support has resulted in decreased EV prices, like the BYD Seagull, which is under $10,000 in China. The United States has tried to combat against Chinese EVs’ affordable prices by increasing import tariffs by 100%. Europe is expected to raise import tariffs for Chinese EV imports as well. However, the EU’s import tariffs might not be enough to dissuade consumers from affordable EV prices.
The BYD Seagull, for example, is expected to start below $20,000 in Europe even after EU tariffs. Volkswagen, one of Europe’s top car brands, doesn’t expect to launch an EV below €20,000 ($21,631) until 2027.
Equipped with a Europe-focused affordable EV, Chinese automakers have one more obstacle to tackle: brand awareness. BYD is already working on spreading its brand in Europe by participating in and funding local sporting events, like the Europe 2024 soccer championship. It is also working closely with local dealerships.
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Elon Musk
Elon Musk confirms xAI’s purchase of five 380 MW natural gas turbines
The deal, which was confirmed by Musk on X, highlights xAI’s effort to aggressively scale its operations.
xAI, Elon Musk’s artificial intelligence startup, has purchased five additional 380 MW natural gas turbines from South Korea’s Doosan Enerbility to power its growing supercomputer clusters.
The deal, which was confirmed by Musk on X, highlights xAI’s effort to aggressively scale its operations.
xAI’s turbine deal details
News of xAI’s new turbines was shared on social media platform X, with user @SemiAnalysis_ stating that the turbines were produced by South Korea’s Doosan Enerbility. As noted in an Asian Business Daily report, Doosan Enerbility announced last October that it signed a contract to supply two 380 MW gas turbines for a major U.S. tech company. Doosan later noted in December that it secured an order for three more 380 MW gas turbines.
As per the X user, the gas turbines would power an additional 600,000+ GB200 NVL72 equivalent size cluster. This should make xAI’s facilities among the largest in the world. In a reply, Elon Musk confirmed that xAI did purchase the turbines. “True,” Musk wrote in a post on X.
xAI’s ambitions
Recent reports have indicated that xAI closed an upsized $20 billion Series E funding round, exceeding the initial $15 billion target to fuel rapid infrastructure scaling and AI product development. The funding, as per the AI startup, “will accelerate our world-leading infrastructure buildout, enable the rapid development and deployment of transformative AI products.”
The company also teased the rollout of its upcoming frontier AI model. “Looking ahead, Grok 5 is currently in training, and we are focused on launching innovative new consumer and enterprise products that harness the power of Grok, Colossus, and 𝕏 to transform how we live, work, and play,” xAI wrote in a post on its website.
Elon Musk
Elon Musk’s xAI closes upsized $20B Series E funding round
xAI announced the investment round in a post on its official website.
xAI has closed an upsized $20 billion Series E funding round, exceeding the initial $15 billion target to fuel rapid infrastructure scaling and AI product development.
xAI announced the investment round in a post on its official website.
A $20 billion Series E round
As noted by the artificial intelligence startup in its post, the Series E funding round attracted a diverse group of investors, including Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX, and Baron Capital Group, among others.
Strategic partners NVIDIA and Cisco Investments also continued support for building the world’s largest GPU clusters.
As xAI stated, “This financing will accelerate our world-leading infrastructure buildout, enable the rapid development and deployment of transformative AI products reaching billions of users, and fuel groundbreaking research advancing xAI’s core mission: Understanding the Universe.”
xAI’s core mission
Th Series E funding builds on xAI’s previous rounds, powering Grok advancements and massive compute expansions like the Memphis supercluster. The upsized demand reflects growing recognition of xAI’s potential in frontier AI.
xAI also highlighted several of its breakthroughs in 2025, from the buildout of Colossus I and II, which ended with over 1 million H100 GPU equivalents, and the rollout of the Grok 4 Series, Grok Voice, and Grok Imagine, among others. The company also confirmed that work is already underway to train the flagship large language model’s next iteration, Grok 5.
“Looking ahead, Grok 5 is currently in training, and we are focused on launching innovative new consumer and enterprise products that harness the power of Grok, Colossus, and 𝕏 to transform how we live, work, and play,” xAI wrote.
Tesla (NASDAQ: TSLA) stock received a price target update from Pierre Ferragu of Wall Street firm New Street Research, citing the company’s growing lead in self-driving and autonomy.
On Tuesday, Ferragu bumped his price target from $520 to $600, stating that the consensus from the Consumer Electronics Show in Las Vegas was that Tesla’s lead in autonomy has been sustained, is growing, and sits at a multiple-year lead over its competitors.
CES 2026 validates Tesla’s FSD strategy, but there’s a big lag for rivals: analyst
“The signal from Vegas is loud and clear,” the analyst writes. “The industry isn’t catching up to Tesla; it is actively validating Tesla’s strategy…just with a 12-year lag.”
The note shows that the company’s prowess in vehicle autonomy is being solidified by lagging competitors that claim to have the best method. The only problem is that Tesla’s Vision-based approach, which it adopted back in 2022 with the Model 3 and Model Y initially, has been proven to be more effective than competitors’ approach, which utilizes other technology, such as LiDAR and sensors.
Currently, Tesla shares are sitting at around $433, as the company’s stock price closed at $432.96 on Tuesday afternoon.
Ferragu’s consensus on Tesla shares echoes that of other Wall Street analysts who are bullish on the company’s stock and position within the AI, autonomy, and robotics sector.
Dan Ives of Wedbush wrote in a note in mid-December that he anticipates Tesla having a massive 2026, and could reach a $3 trillion valuation this year, especially with the “AI chapter” taking hold of the narrative at the company.
Ives also said that the big step in the right direction for Tesla will be initiating production of the Cybercab, as well as expanding on the Robotaxi program through the next 12 months:
“…as full-scale volume production begins with the autonomous and robotics roadmap…The company has started to test the all-important Cybercab in Austin over the past few weeks, which is an incremental step towards launching in 2026 with important volume production of Cybercabs starting in April/May, which remains the golden goose in unlocking TSLA’s AI valuation.”
Tesla analyst breaks down delivery report: ‘A step in the right direction’
Tesla has transitioned from an automaker to a full-fledged AI company, and its Robotaxi and Cybercab programs, fueled by the Full Self-Driving suite, are leading the charge moving forward. In 2026, there are major goals the company has outlined. The first is removing Safety Drivers from vehicles in Austin, Texas, one of the areas where it operates a ride-hailing service within the U.S.
Ultimately, Tesla will aim to launch a Level 5 autonomy suite to the public in the coming years.
Elon Musk confirms xAI’s purchase of five 380 MW natural gas turbines
Elon Musk’s xAI closes upsized $20B Series E funding round
