April 2025 marked a watershed moment in the European electric vehicle (EV) market as BYD outsold Tesla for the first time ever.
According to JATO Dynamics, BYD registered 7,231 battery-electric vehicles, narrowly surpassing Tesla’s 7,165 registrations.
This shift comes despite EU-imposed tariffs on Chinese-made EVs, which were expected to hinder BYD’s growth. However, the company’s aggressive expansion strategy and diversified lineup – including plug-in hybrids – helped it navigate trade barriers and maintain momentum.
Tesla, on the other hand, has faced declining sales, with its European registrations dropping 49% year-over-year. Production delays, protests against CEO Elon Musk, and consumer hesitation over new Model Y trims have contributed to the slump.
BYD’s success signals a changing landscape in Europe’s EV market. With its Hungarian production plant set to open soon, the company is poised for further growth.
Presumably now, Tesla must reassess its strategy to regain dominance in a market it once ruled.
As competition intensifies, European consumers will benefit from greater EV choices, potentially driving further innovation in the industry
BYD, a leading name in the electric vehicle (EV) industry, has unveiled groundbreaking super-charging technology that could redefine EV adoption
The new ‘super e-platform’ boasts peak charging speeds of 1,000 kilowatts (kW), enabling vehicles to gain a range of 400 kilometers (249 miles) in just five minutes.
This innovation brings EV charging times closer to the convenience of refueling traditional gasoline vehicles.
Charging speeds of 1,000 kW would be twice as fast as Tesla’s superchargers whose latest version offers up to 500 kw charging speeds. Fast-charging technology has been key to increasing EV adoption as it is seen to help assure EV drivers’ concerns over being able to charge their cars quickly.
The announcement, reportedly made at BYD’s Shenzhen headquarters, marks a significant leap in addressing ‘charging anxiety’- a key concern for EV users. Founder Wang Chuanfu emphasised the company’s commitment to making EV charging as quick and seamless as possible.
This is the first time the industry has achieved megawatt-level charging power, setting a new benchmark.
To complement this technology, BYD plans to build over 4,000 ultra-fast charging stations across China.
The initial rollout will feature the super e-platform in two new models: the Han L sedan and Tang L SUV, priced from 270,000 yuan ($37,328). These vehicles will pioneer the use of this cutting-edge charging system.
As competition in the EV market intensifies, BYD’s innovation positions it as a formidable player, challenging established giants like Tesla and paving the way for a more electrified future.
Elon Musk’s Vision for Tesla’s Trillion Dollar Future
Elon Musk, the visionary CEO of Tesla, has consistently set ambitious goals for the company. Among his most audacious claims is that Tesla could potentially become a multi trillion-dollar company and even reach a valuation of $25 trillion, largely driven by the deployment of robotaxis.
Robotaxi vision
Tesla’s robotaxi concept is centred around autonomous vehicles that can operate as self-driving taxis. These vehicles are equipped with Tesla’s Full Self-Driving (FSD) technology, which Musk believes will revolutionize transportation. By transforming Tesla cars into autonomous ride-sharing vehicles, the company could generate significant revenue without increasing the number of cars sold.
Projections
Musk’s financial projections are based on the immense potential of the robotaxi market
Revenue Generation: Each Tesla vehicle could earn substantial income as a robotaxi. If Tesla owners opt into the robotaxi network, Tesla could take a share of the revenue generated from these rides.
Cost Efficiency: Autonomous driving reduces the need for human drivers, leading to lower operational costs. This efficiency could make robotaxis more affordable for users and highly profitable for Tesla.
Reduced pollution: will help meet green energy goals.
Market Penetration: As autonomous technology matures, the adoption of robotaxis could grow rapidly, capturing a significant share of the global transportation market.
Market potential
The global ride-hailing market is already valued at hundreds of billions of dollars, and with the introduction of autonomous vehicles, this market is expected to expand further. Tesla’s early entry and continuous advancements in FSD technology position it to be a dominant player in this space.
Challenges
While the potential is enormous, there are several challenges and scepticism surrounding Musk’s projections
Regulatory Hurdles: Autonomous vehicles must navigate a complex regulatory landscape. Approval processes and safety standards vary by region, which could delay widespread adoption.
Technical Milestones: Achieving full autonomy is a significant technical challenge. Tesla’s FSD technology is still in development, and perfecting it for widespread use requires overcoming numerous technical obstacles.
Market Competition: Tesla is not the only player in the autonomous vehicle market. Competitors like Waymo, Cruise, and traditional automakers are also investing heavily in autonomous technology.
Conclusion
Elon Musk’s vision of making Tesla a trillion-dollar and eventually a $25 trillion company through robotaxis is both bold and captivating. The success of this vision hinges on the successful deployment and adoption of autonomous driving technology. While there are significant challenges to overcome, Musk’s track record of defying odds and achieving groundbreaking innovations keeps the possibility within the realm of achievable dreams.
The future of transportation, as envisioned by Musk, could fundamentally reshape how we move and how Tesla thrives as a pioneer in autonomous mobility.
Tesla’s future does seem promising with the introduction of Optimus, their humanoid robot, as well as their advancements in solar energy and battery technology.
Tesla’s stock declined on Friday 11th October 2024 following the electric vehicle maker’s highly anticipated robotaxi event, which left investors unimpressed
£60 billion was wiped off Tesla market cap
CEO Elon Musk showcased the Cybercab concept vehicle, announcing that it would be available for purchase at a price below $30,000.
Analysts reportedly commented that the event did not emphasise any immediate opportunities for Tesla, focusing instead on Musk’s long-term vision for fully autonomous driving.
At the ‘We, Robot’ event on Thursday 10th October 2024, CEO Elon Musk presented the Cybercab, a sleek, silver two-seater without steering wheels or pedals, underscoring his company’s goal to develop a fleet of self-driving vehicles and robots.
Musk expressed his hope for Tesla to start producing the Cybercab by 2027, though he did not specify the manufacturing locations. He reiterated that the Tesla Cybercab would be sold for less than $30,000.
Furthermore, he anticipated that Tesla’s Model 3 and Model Y electric vehicles would feature ‘unsupervised FSD’ operational in Texas and California by next year. FSD, standing for Full Self-Driving, is Tesla’s advanced driver assistance system, currently available in a supervised format.
Investors and analysts were underwhelmed by the event. Tesla shares fell.
Tesla one year chart as of 11th October 2024
Tesla one year chart as of 11th October 2024
Elon Musk’s wealth
Elon Musk is projected to become the world’s first trillionaire by 2027, as per a recent report by Informa Connect Academy. Among global billionaires, Musk is nearest to reaching the 13-figure threshold, with his wealth continuing to increase.
China has seen new energy vehicles surpass traditional fuel-powered cars in monthly sales for the first time.
(Data as per the China Passenger Car Association’s July 2024).
New energy vehicles, comprising solely battery-operated and hybrid-powered cars, represented 51% of China’s new passenger car sales as registered in July 2024 as reported by China Passenger Car Association.
This marks an increase from a 36% market share the same time in 2023, and a rebound from just under one-third in January 2024.
Report accuracy
The accuracy of the association’s data has previously faced scrutiny. July’s report revealed that battery-only vehicles had higher sales than hybrids, achieving a 28% market share.
But sales and delivery reports from companies like BYD suggest a growing consumer preference for hybrid vehicles in China which sits in line with the China Passenger Car Association data.
As the largest global automobile market, China has experienced a slowdown in overall economic growth, leading to strong competition and a price war within the new energy vehicle sector.
Policy
For over ten years, the Chinese government has ‘supported’ the local new energy vehicle industry with subsidies and beneficial policies. The most recent trade-in initiative aimed at stimulating consumption has particularly encouraged the purchase of new energy vehicles.
For the first time, automotive companies in China surpassed their U.S. counterparts in car sales last year, driven by BYD and expansion in emerging markets, according to a data released Thursday 13th July 2024.
Chinese brands such as BYD now at the forefront, reportedly sold 13.4 million new vehicles last year. In comparison, American brands sold approximately 11.9 million units. Japanese brands remained at the top with 23.59 million sales.
China’s sales growth rate surpassed that of the U.S., with a 23% rise from the previous year compared to the U.S.’s 9% increase.
The consistent high pricing by legacy automakers has inadvertently steered consumers towards more affordable Chinese alternatives.
No surprise here then as manufacturers milked profits from legacy lineups!
Tariffs have now been introduced on China to curb their automakers runaway success.
In a significant development that may affect the electric vehicle (EV) market, the European Union (EU) has tentatively agreed to levy tariffs on Chinese EV manufacturers.
This decision reportedly follows an inquiry into the surge of inexpensive, government-subsidized Chinese vehicles entering the EU market.
From 4th July 2024, Chinese EV producers who participated in the investigation will incur an average duty of 21%, while those who did not will face a substantial 38.1% tariff. Specific rates will be imposed on firms such as BYD, Geely, and SAIC.
Additionally, non-Chinese automobile companies manufacturing some EVs in China, including those based in the EU like BMW, will also be impacted. Tesla might receive a specially calculated duty rate upon request.
These levies are on top of the current 10% tariff on all electric cars manufactured in China. The EU’s action comes after the United States’ drastic measure last month to increase its tariff on Chinese electric cars from 25% to 100%.
Some critics view this anti-subsidy probe as protectionist, potentially harming China-EU economic relations and the worldwide automotive production and supply chain. The German Transport Minister has reportedly cautioned about the possibility of a trade conflict with Beijing.
Although the tariffs are intended to shield the EU’s own industry, they highlight the challenges of maintaining a balance between free trade and competitiveness in the swiftly changing EV sector.
Unless a qualified majority of EU nations opposes it, the tariffs will become permanent in November 2024. The European car industry stresses the need for free and fair trade but recognizes that promoting the adoption of electric cars requires a diverse strategy.
As the dispute over tariffs persists, the repercussions for the EV market are yet to be determined.
One thing is for sure, the consumer will suffer through these tariffs and also through extra road tax levies yet to be introduced, especially in the UK.
The company intends to reduce its global workforce by over 10%, amounting to roughly 14,000 employees
As of December, Tesla had a total of 140,473 employees worldwide.
This decision is believed to be a response to the obstacles Tesla is encountering with slowing growth and operational effectiveness and cheaper competition.
In an internal memo, billionaire owner Elon Musk addressed the layoffs, acknowledging that it was a difficult decision but necessary for the company’s future. He emphasized the need to streamline operations and prepare for the next phase of growth.
The layoffs have already begun and also include some key executives.
Why?
Analysts offer diverse interpretations of the layoffs. Some perceive them as indicative of cost pressures stemming from Tesla’s investments in new models and artificial intelligence (AI).
The company’s delay in updating its aging vehicle lineup, coupled with high interest rates, has weakened consumer demand. Moreover, the influx of affordable electric vehicles, especially from China, such as BYD, has intensified the competition.
Efficiency drive?
While the layoffs indicate challenges, they also highlight Tesla’s dedication to adaptability and efficiency. As the electric vehicle (EV) industry progresses, Tesla strives to stay lean, innovative, and strategically positioned for ongoing growth. The company is scheduled to announce its quarterly earnings later this month, which analysts will scrutinize in the context of the recent workforce reductions.
In summary, Tesla’s layoffs are indicative of the intricate dynamics within the automotive sector, where innovation, cost control, and market forces converge.
The company’s capacity to steer through these complexities will determine its future prosperity.
The EV named ‘Seagull’ sub $10,000 price tag. This vehicle will likely take-off!
Global automakers are becoming increasingly concerned that Chinese competitors, such as the Warren Buffett-endorsed BYD, might saturate their EV market with cheaper EVs, potentially undermining local production and reducing vehicle prices.
Concerns have been raised that this could damage national automotive industries, and balance sheets. However, it would undoubtedly benefit consumers by providing more affordable entry-level electric vehicles.
The BYD Seagull, an all-electric hatchback manufactured in China, is priced at only 69800 yuan (under $10,000) and is said to be profitable for the rapidly growing Chinese automaker.
There’s fear among global automakers that BYD and other Chinese rivals could flood their markets, undercutting domestic production and vehicle prices.
The Chinese are coming to a town near you – it’s just business.
Apple has reportedly cancelled its plans to build an electric car, bringing an end to a secretive project known as Project Titan
The EV project consumed immense resources over the past 10 years, with executives from the company making an unexpected announcement. The decision to halt the program marks a significant retreat from Apple’s previous strategy.
Apple has never publicly acknowledged the project, which was rumoured to involve some two thousand people.
Key points:
Project Titan: Under the codename Project Titan, Apple aimed to develop an electric, semi-autonomous vehicle. The company reportedly spent billions on this initiative, hiring executives from renowned car companies and acquiring autonomous vehicle startups.
Setbacks and Delays: The attempts to bring an Apple EV to market faced numerous setbacks, including layoffs, executive departures, and shifting ambitions.
Shift to Generative AI: Many employees who worked on the electric car project will now transition to working on generative artificial intelligence (AI) projects. Apple’s focus will shift toward AI research and development.
Tesla Comparison: Initially, Apple reportedly considered developing an entirely self-driving car with no steering wheel. However, the company later decided to focus on a vehicle with some self-driving capabilities, akin to Tesla’s EVs.
Apple now aims to deliver generative AI features to consumers within the year
While the electric car dream may have faded, Apple’s focus on cutting-edge technology continues as it shifts towards AI innovation.
But how much more innovation and profit is there left to squeeze from the iPhone?
Tesla recalled more than two million cars in December 2023 after the U.S. regulator found its driver assistance system, Autopilot, was partly defective, it was reported.
It follows a two-year investigation into crashes which occurred when the tech was in use. The recall applies to almost every Tesla sold in the U.S. since the Autopilot feature was launched in 2015.
The update happens automatically and does not require a visit to a dealership or garage but is still referred to by the U.S. regulator as a recall.
The UK Driver and Vehicle Standards Agency reportedly said it was not aware of any safety issues involving Teslas in the UK, noting that cars sold in the UK are not equipped with all of the same features as cars in the U.S.
Chinese company, Build Your Dreams (BYD), has moved another step closer to over-taking Tesla as the world’s biggest-selling manufacturer of electric vehicles.
The firm said on Monday it had sold a record 526,000 battery-only vehicles in the last three months of 2023, aided by more than a 70% surge in sales in December 2023.
Tesla is scheduled to release its latest quarterly vehicle production and delivery figures before Wall Street opens on Tuesday.
For the year, BYD said it had sold more than 3 million new energy vehicles (NEVs), which includes battery-only vehicles and hybrids. Almost 1.6 million of its total sales were battery-only vehicles, the firm said.
Industry analysts have forecast that Tesla sold around 483,000 electric vehicles in the last three months of 2023 and 1.82 million for the year as a whole.
The stock dropped more than 15% over the last few days after the company posted third-quarter earnings on Wednesday 20th October 2023.
The earnings report showed that Tesla missed analysts’ expectations on revenue and earnings per share. Tesla also announced a recall of 475,000 vehicles in the US due to a potential battery fire risk.
Additionally, Tesla faced regulatory challenges in China, where it was banned from selling its AI chips due to national security concerns. These factors contributed to the negative sentiment around Tesla stock and increased its volatility.
Tesla stock has fallen 73% from its record high in November 2021. The stock is down 69% in 2022, more than double the decline in the Nasdaq.
Tesla price crossed below 200 day moving average this is a bearish indicator.
Tesla price crossed below 200 day moving average this is a bearish indicator.
Among major carmakers, Ford is down 46% and General Motors has fallen 43%. Since its IPO in 2010, Tesla has only fallen in one other year, an 11% drop in 2016. Some analysts and investors are still optimistic about Tesla’s long-term prospects, citing its innovation, leadership, and loyal customer base.
However, others are sceptical about Tesla’s valuation, profitability, and competition. Tesla’s stock performance in the coming months will depend on how it can overcome its current challenges and deliver on growth.
Don’t underestimate Elon Musk, but bear in mind other big car manufacturers are now catching and moving ahead of Tesla in the EV race.
Shares of Chinese electric vehicle manufacturers took a hit on Thursday 18th October 2023 after Tesla reported disappointing 3Q results on Wednesday 17th October 2023.
It was the first time Tesla, co-founded by Elon Musk, missed on both earnings and revenue since Q2 2019.
On Thursday morning, Hong Kong-listed shares of Chinese EV makers BYD and Xpeng fell approximately 2.18% and 8.76%. Li Auto slid 3.14%, while Nio and Geely dropped 8.36% and 3.97%.
Elon Musk reportedly cautioned that the Tesla Cybertruck, the electric full-size pickup truck model; would not deliver substantial positive cashflow for 12-18 months after production begins.
Musk reportedly said the company is working to bring down the prices of its cars amid high interest rates. ‘I’m worried about the high interest rate environment we’re in,’ he said, adding that it will be much harder for consumers to purchase cars if interest rates were to increase further.
Tesla shares down
Tesla shares closed 4.78% lower on Wednesday 17th October 2023. Other U.S. EV rivals Lucid and Rivian fell more than 9% on the same day. Lucid’s stock dropped a day earlier after it reported disappointing Q3 EV deliveries.
Tesla shares closed 4.78% lower on Wednesday 17th October 2023.
In the first six months of the year, BYD was the world’s top EV manufacturer, contributing 21% of global sales of EVs, according to research firm Canalys. Tesla trailed behind at second place with 15% market share while German carmaker Volkswagen held 7% market share in third place.
Price pressure
EV players are under pressure from a price war to gain market share amid intense competition.
Tesla introduced a number of price cuts over the last few months, especially in China – the world’s biggest EV market.
Rivals BYD, Nio, Li Auto and Xpeng have also joined Tesla in lowering the prices for some of their EV models.
Shares in BYD, (Build Your Dreams), jumped this week after it said it expected third-quarter profits to more than double compared with last year.
BYD is now ahead of Tesla in quarterly production – and second to the U.S. car maker in global sales.
China has been leading the global electric vehicle (EV) market for years, thanks to its large domestic demand, generous government subsidies, and well-established battery and electronics industry. However, the west is not giving up on the race to electrify the transport sector and reduce greenhouse gas emissions.
Europe reportedly surpassed China in terms of new EV registrations in 2020, driven by stricter emission regulations, higher consumer awareness, and more diverse and affordable models. The United States also saw a growth in EV sales, despite the Covid-19 pandemic and lower fuel prices. How are western countries and companies now competing with China in the EV market?
Global automakers such are using advanced tech such as driver-assist software to compete in the world’s largest EV market – China. ‘China’s domestic brands are leading the market in the development and implementation of advanced assisted driving systems, capitalizing on their early-entry advantages in the electric and intelligent vehicle sector‘, a recent report suggests.
BofA reportedly said it expects China to still be the world’s largest EV market in 2025, standing at 40%-45% market share.
Strategy
One of the strategies is to invest more in research and development, innovation, and collaboration. Western automakers are trying to improve the performance, efficiency, and cost of their EVs by developing new technologies and designs, such as advanced batteries, smart and autonomous features, and sustainable materials. They are also partnering with other players in the EV ecosystem, such as battery suppliers, charging network operators, software developers, and regulators, to create synergies and overcome challenges.
EV
Another strategy is to adapt to local market conditions and consumer preferences. Western automakers are aware that China is not a homogeneous market, but rather a complex and dynamic one with different regional characteristics, customer segments, and competitive landscapes. They are tailoring their products and services to meet the specific needs and expectations of Chinese consumers, such as offering more connectivity options, longer driving ranges, and lower prices. They are also leveraging their global brand reputation, quality standards, and customer loyalty to differentiate themselves from local competitors.
Niche markets
A third strategy is to diversify their portfolio and target niche markets. Western automakers are not only focusing on passenger cars, but also exploring other types of EVs, such as commercial vehicles, motorcycles, scooters, and buses. They are also targeting niche markets that have high growth potential or specific demands, such as luxury cars, sports cars, or green cars. By doing so, they can tap into new customer segments and create more opportunities.
The EV market is expected to grow rapidly in the coming years, as more countries and regions adopt policies and measures to support the transition to low-carbon mobility. China will remain a dominant player in the global EV scene, but the west will not lag behind.
How do EV’s compare to traditional vehicles?
Electric vehicles (EVs) are becoming more popular and competitive with traditional cars in terms of performance and cost. Here are some of the main differences and similarities between EVs and traditional cars:
Performance: EVs have a faster acceleration and are more efficient than traditional cars. They can reach high speeds in a short time, thanks to their instant torque rovided by the electric motor. They also have a smoother and quieter ride, as they do not have gears or transmissions. However, traditional cars perform better at high speeds and have a longer driving range than EVs. They can also handle different terrains and weather conditions better than EVs, as they have more power and stability.
Cost: EVs have a higher retail price than traditional cars, on average. But EVs may be a better financial deal for consumers over the long term. That’s because maintenance, repair and fuel costs tend to be lower than those for fossil fuel cars. EVs have fewer moving parts and fluids, which means they require less servicing and repairs. They also run on electricity, which is cheaper and cleaner than fossil derived fuels. However, traditional cars have lower upfront costs and more financing options than EVs. They also have a higher resale value and more availability than EVs, as they are more common and therefore familiar to buyers.
Environmental impact: EVs are more environmentally friendly than traditional cars, as they do not emit greenhouse gases or pollutants that contribute to air quality problems. They can also use renewable energy sources, such as solar or wind power, to charge their batteries and use fossil derived energy too.
However, EVs are not completely carbon-neutral, as they still depend on the electricity grid, which still uses fossil fuels to generate power. They also produce emissions during their manufacture and disposal processes.
Traditional cars, on the other hand, are a major source of carbon emissions and environmental damage, as they burn fossil fuels and release harmful substances into the atmosphere such as carbon monoxide and carbon dioxide. They also consume natural resources and create waste during their production and operation.
Fossil fuels generate power for the electric vehicle
As the EV population grows, so too will the energy requirement – and it will most likely be met moreso by fossil fuels in the short term as well as by renewables.
According to various sources, electric cars are generally cheaper to run than petrol cars in terms of fuel, road tax, maintenance, and insurance. However, the initial purchase price of electric cars is usually higher than petrol cars, so the overall cost of ownership may depend on how long you plan to keep the car and how much you drive it.
Running cost examples of electric cars vs petrol cars – (Spring 2023 data)
According to British Gas – fully charging a typical 60kW electric car at home costs £15.10 and gives you a 200-mile range, whereas filling up a petrol car with a similar range costs over £104. Electric cars also pay zero road tax, while petrol cars pay between £30 to £2,365 per year depending on their CO2 emissions. Electric cars also tend to have lower maintenance and insurance costs than petrol cars.
According to Regit – charging an electric car like the Vauxhall Corsa-E costs roughly £9.50 in electricity for a 200-mile range, while fuelling a petrol car with a similar range costs £41.63 in petrol. Electric cars also save money on road tax, maintenance, and congestion charges compared to petrol cars.
According to Which? – the electric Mini Cooper SE costs £8,000 more to buy than the petrol Mini One, but it costs £2,591 less to run over three years, mainly due to fuel savings. The electric car also pays no road tax or congestion charges, while the petrol car pays £155 and £11.50 per day respectively.
According to Auto Express – the annual running costs of an electric car are 21% less than those of a petrol car, excluding the purchase price. The average annual running cost for an electric car is £1,742, compared to £2,205 for a petrol car.
According to RAC – the annual running costs of an electric car like the Nissan Leaf are £1,233 less than those of a petrol car like the Ford Focus, excluding the purchase price. The electric car costs £1,062 per year to run, while the petrol car costs £2,295
Conclusion
There are many factors that affect the running costs of electric cars vs petrol cars, and different sources may have different assumptions and methods of calculation. However, the general trend is that electric cars are cheaper to run than petrol cars in most cases.
Hydrogen and hybrids are fast becoming future contenders. Watch this space…
