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BYD issues substantial EV price cut, hoping to erode Tesla sales success

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BYD has announced a significant price cut on its electric Seal sedan as the Chinese brand looks to decrease Tesla’s EV dominance in the region.

With the tsunami of demand for EVs in China, one of the biggest market winners has been BYD, which is now working to become the top EV seller in the country. However, as Tesla has rapidly lowered its prices for its top models, particularly in China, BYD has been forced to respond with its own price cuts. Now, BYD has introduced another fresh price cut, slashing an astonishing 10% from its Tesla Model 3 competitor, the Seal.

As initially reported by Reuters, BYD has decreased the price of its Seal sedan by 10% across the board and now makes the electric sedan available in five different trims. The BYD Seal Champion Edition, a near-base model variant that competes with the RWD Model 3, now starts at 189,800 yuan ($27,459), which is just over 20,000 yuan ($2,890) cheaper than earlier this year. The Seal Champion Edition already undercut the Model 3 but is now a remarkable 18% cheaper than its American counterpart.

With this newest price cut, BYD is likely aiming to close the sales gap the Seal has with the Tesla Model 3, which has been an incredible sales success in China, with 42,782 Model 3s sold last quarter alone. In comparison, BYD sold 19,572 Seal EVs during the same time period.

Despite Tesla’s price cuts keeping BYD away from complete EV dominance, the Chinese brand still has plenty to be excited about. Foremost, the Chinese automaker reported mind-boggling first-quarter earnings, which sent its stock skyrocketing. Second, while its battle with Tesla seems unending, it is handily winning over customers from local sales hegemon Volkswagen, which has yet to garner a significant EV sales following in the region.

Looking forward to Q2, many expect a slight slowing in the overall car market as the Chinese economy shudders thanks to global market instability. According to Reuters, BYD has reduced shifts at many of its production facilities in preparation.

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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.

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Elon Musk teases TSMC as potential Terafab partner

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SpaceX Terafab rendering
SpaceX Terafab rendering

Elon Musk has acknowledged that early discussions with Taiwan Semiconductor Manufacturing Company (TSMC) could bring the company into his ambitious Terafab semiconductor project, signaling a possible partnership with the world’s leading contract chipmaker.

Musk confirmed that early talks are underway, but as of right now, they are “just discussions.” There is no confirmation of a deal nor dismissal of the possibility of one, leaving open the prospect of one of the largest advanced-chip collaborations under discussion in the U.S.

The report that speculated on potential discussions between Terafab and TSMC comes from Tim Culpan, who outlined a few ways the collaboration could operate. One is TSMC using the project as an “anchor customer” for future facilities in Texas, potentially contributing process expertise, operational know-how, or capacity while Terafab provides capital, long-term purchase commitments, or both.

Tesla and SpaceX jointly developed the Terafab project, with Intel already participating on the tech side. Elon Musk announced the project in March, and it intends to produce more than one terawatt of AI compute capacity annually once fully built.

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Elon Musk’s Terafab project locks up massive new partner

Company statements place the first phase at approximately $16.8 billion in cost, with later filings pointing to a total that could reach well into the tens of billions across multiple stages.

Intel joined the effort in April 2026 and is expected to supply its 14A manufacturing process for the full-scale plant.

Musk has said existing suppliers, including Samsung and TSMC, remain important for near-term needs; Tesla already has production arrangements with Samsung for AI5 and AI6 chips, but that future demand from Optimus robots, Cybercab vehicles, and planned space-based data centers will eventually exceed what the global industry can currently deliver.

Terafab is positioned as the long-term answer to that projected shortfall, and Tesla did something similar during COVID to avoid a chip shortage. This is just a much larger-scale solution.

If the partnership were to materialize, it would add TSMC’s industry-leading strategies to a project that already combines Tesla’s and SpaceX’s capital and offtake with Intel’s process technology. For now, the only public confirmation is Musk’s brief acknowledgement that conversations are occurring.

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Tesla reveals early Robotaxi charging strategy, showing scrappy DNA

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Credit: Tesla

Tesla’s early strategy for charging units operating within its Robotaxi fleet reveals that the company surely has not lost any of that scrappy DNA that took it from an unlikely success story to the most valuable carmaker in the world.

An observer at a Tesla Supercharger in Austin spotted ten total Robotaxi vehicles arrive: one Cybercab and nine Model Y units. A Tesla employee was waiting at the lot and allowed each unit to park itself; every car that arrived had nobody in it.

Tesla wins FCC approval for wireless Cybercab charging system

The Tesla employee would walk around and plug each car in, adjusting the parking if needed:

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It’s a very interesting strategy, but extremely understandable at this early point in the Robotaxi program. It’s only been out for about 15 months, and Cybercab just entered the fleet in early September.

On top of that, Tesla is still working tirelessly on its wireless charging apparatus, and a new patent was just published regarding that product last week.

However, this is just another example of how Tesla still has plenty of that scrappy DNA leftover from the “production hell” days, when CEO Elon Musk slept on the floor of the factory, employees were working crazy hours, Tesla was building Sprung Structures to build cars in, and the company was tiptoeing on the brink of bankruptcy.

For now, Tesla is utilizing a simple system for recharging its ride-hailing vehicles, and that is a Tesla employee doing it manually until another solution presents itself. Sure, it’s not the most high-tech thing, and it certainly is not what people might have expected at this point in time, but it works, and it’s keeping the entire suite running.

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Tesla Robotaxi expands hours, Musk explains why it’s been a challenge

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Credit: Tesla

Tesla is expanding its Robotaxi service hours by pushing the time back by one hour, keeping the ride-hailing service operational until 11 p.m., one hour later than previously.

CEO Elon Musk confirmed the change and offered a specific reason the expansion has been gradual: the system still needs to reliably avoid small pets that are difficult to see after dark, as they commonly blend into the color of the road, especially when they’re grey.

The latest adjustment restores only a fraction of the operating window the service once held. When paid Robotaxi rides began in Austin on June 22, 2025, vehicles ran from 6 a.m. to midnight.

Tesla Robotaxi will be a 24/7 service: here’s when

In September 2025, Tesla lengthened the day to a 2 a.m. close, producing a 20-hour window that stayed in place for most of the following year. By early August of this year, the cutoff had already been pulled back; an August 26 update formalized hours of 6 a.m. to 10 p.m. across Austin and several other markets.

The October move to 11 p.m. therefore leaves the Austin day one hour shorter than the original launch schedule and three hours shorter than the 2025 peak.

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Musk addressed the constraint directly after the announcement. “The main thing we’re trying to solve is making sure that we don’t run over pets when they’re hard to see at night,” he wrote. “Literally trying to avoid grey kittens on grey tarmac in the dark.”

The example points to a low-contrast perception problem in which a small animal can blend into the road surface under limited lighting.

Tesla’s vehicles rely on cameras and neural-network processing rather than lidar; Musk has previously argued that advanced vision software can extract useful information even in low light by analyzing photon counts, but the pet-detection case remains the stated limiter in later hours.

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The modest schedule change arrives alongside faster growth in the purpose-built Cybercab fleet. Texas registration data tracked by observers showed the Austin Cybercab count rising sharply in recent weeks, reaching 169 vehicles after more than 100 were added in a short span.

Tesla has indicated that a broader shift toward 24-hour operation is tied to the upcoming FSD v15 software release expected this month on Robotaxi vehicles. Until that capability is validated for the edge cases Musk described, the company continues to add service time incrementally rather than jumping straight to overnight coverage.

The one-hour extension gives Austin riders a later option for evening trips while the underlying detection work continues.

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