In a recent tweet, Tesla CEO Elon Musk praised Chinese automaker BYD and acknowledged their impressive cars, highlighting the growing competition in the electric vehicle (EV) sector. Musk’s comments signify the remarkable progress that BYD has made since their initial encounter back in 2011 when Musk lightly dismissed BYD as a rival to Tesla.
At present, Tesla holds the position of the world’s most valuable automaker by market capitalization, establishing itself as the undisputed leader in the realm of all-electric cars. However, it is essential to recognize BYD’s emergence as a major powerhouse in the automotive industry, particularly within China.
When comparing the raw volume of New Energy Vehicles (NEV) sold in China, BYD currently outpaces Tesla. It should be noted that BYD’s figures include hybrid cars and plug-in hybrids, while Tesla’s offerings are primarily pure electric vehicles. Additionally, Tesla’s vehicles generally come with a premium price tag, giving BYD’s more affordable NEV options a competitive edge in the Chinese market.
That was many years ago. Their cars are highly competitive these days.
— Elon Musk (@elonmusk) May 27, 2023
Despite their previous exchanges, Musk took to Twitter to give credit where it is due. Responding to a video of his 2011 interview about BYD, Musk clarified that his sentiments from back then no longer hold true. He acknowledged that BYD’s cars have become highly competitive in recent years, indicating an appreciation for the progress the Chinese automaker has achieved.
Considering BYD’s status as Tesla China’s largest competitor, one could speculate that BYD’s dominance in China’s NEV sector may have played a role in motivating Tesla to develop its next-generation platform. This platform aims to facilitate the production of electric vehicles that are more affordable than Tesla’s current offerings, such as the Model 3 sedan and Model Y crossover.
While Musk occasionally indulges in light-hearted banter with rivals, he has also demonstrated a willingness to acknowledge and support non-Tesla all-electric cars. In the past, Musk publicly commended the Porsche Taycan, a direct competitor to Tesla’s Model S, stating that it seemed like a good car and praising its impressive track performance at the Nurburgring. Furthermore, Musk expressed support for the Mustang Mach-E, a direct competitor to Tesla’s Model Y, showcasing his willingness to recognize worthy competition within the EV market.
As the EV industry continues to evolve and mature, the acknowledgment of competitors’ achievements by industry leaders like Elon Musk underscores the significance of healthy competition and innovation in driving the sector forward. The recognition of BYD’s advancements highlights the growing prominence of Chinese automakers in the global EV landscape and sets the stage for further developments and advancements in the electric vehicle market.
