I would never drive a Cybertruck.
Not because of Elon’s politics. Not because of the sticker price. Not because of all the recalls or the chance I’d get flipped off pulling into the local Whole Foods parking lot either.
Truth be told, I don’t like standing out in a crowd. I live a low key life.
There’s also the neurotic risk manager in me that fears I might inadvertently cut someone off and they would remember the a-hole in the Cybertruck sometime down the road.
Lucky for us all, Tesla (Nasdaq: TSLA) might not be the only affordable EV option soon.
In Monday’s issue of the Daily Disruptor I mentioned that Tesla is facing stiff competition from Chinese automaker BYD.
BYD became the world’s largest EV manufacturer at the end of 2023, beating Tesla for that title.
Since then the company hasn’t looked back.
BYD reported $107 billion in sales for 2024, compared to Tesla’s revenue of $97.7 billion.
And earlier this month, BYD took another swing at Tesla when it unveiled its new charging platform that promises peak speeds of 1,000 kilowatts.
That’s twice as fast as Tesla’s best superchargers.
This new “super e-platform” could add 250 miles of range in just five minutes, making EV charging as fast as filling up a gas tank.
Given that slow charging is one of the biggest obstacles to EV adoption, it’s easy to see why this is a big deal…
And why Axios and others are calling it a “DeepSeek” moment for the company.
Because it seems like the kind of technological leap that could transform the EV industry.
But is it really?
And can BYD translate its global dominance into a takeover of the U.S. EV market?The Case for BYD
There’s no question that BYD sells inexpensive vehicles.
Its entry-level EV is priced as low as $9,555, even though it offers advanced autonomous driving features.
Compare that to Tesla’s most affordable EV, which retails for over $32,000 in China. You have to ask…
How is this possible?
BYD’s not-so-secret weapon has been its iron grip on its EV supply chain.
Unlike most automakers, which rely on third-party battery suppliers, BYD makes its own. In fact, the company started out as a battery maker before it started manufacturing EVs.
This level of vertical integration is similar to the way Apple and Amazon became global tech giants. And it has helped BYD keep costs low in China’s fiercely competitive EV market.
Michael Dunne, CEO of Dunne Insights, put it bluntly: “No one can match BYD on price.”
That’s why Tesla has had to slash prices to stay competitive in China, where legacy automakers also struggle to keep up.
But price wars are one thing. Technological supremacy is another.
Tesla’s latest superchargers offer a charging rate of up to 500 kilowatts, which can add up to 168 miles of range in 15 minutes.
Mercedes recently unveiled an all-electric CLA which will be able to recharge up to 202 miles within 10 minutes.
But BYD’s new 1,000-kilowatt chargers are a bold step forward in this rapidly escalating arms race.
If these super e-platforms live up to the hype, it would give EVs a similar range as internal combustion engine vehicles, which can usually travel around 300 miles with just 5 minutes of refueling.
Still, BYD faces stiff competition of its own.
Just a week after BYD’s announcement, Chinese rival Zeekr unveiled an even faster 1.2-megawatt charging system.
And skeptics argue that what’s truly needed isn’t just speed. Instead, EV batteries require a balance between performance and longevity.
On a recent InsideEVs Plugged-In Podcast, Mercedes-Benz’s high-power charging chief, Andrew Cornelia, cautioned that “faster is not always better.” He pointed out that ultra-fast charging can generate excessive heat, damaging batteries over time.
So it remains to be seen if BYD’s charging stations fulfill their promise.
But what about the company’s plans for the U.S. market?
Can BYD Dominate the U.S.?
BYD clearly wants to make inroads into the U.S., but that’s easier said than done.
High tariffs, regulatory roadblocks and political tensions could make direct entry difficult. That’s why the company is eyeing Mexico as a potential launchpad, where it already has a foothold in the electric bus sector.
But even if BYD can bypass all these trade barriers, there’s another problem.
According to AAA, the vast majority of Americans still aren’t interested in buying an EV either now or in the future.
What’s more, despite recent setbacks, the existing EV market in the U.S. is already dominated by Tesla.
Even well-funded newcomers like Rivian and Lucid have struggled to gain traction here.
That’s why BYD will not only need cheaper cars and faster charging to break through in this market. It will need to win over a deeply brand-loyal customer base.
But despite my skepticism about BYD’s ambitions, they shouldn’t be dismissed outright.
The company’s ability to undercut competitors on price and now potentially lead on charging tech could have ripple effects across the EV industry.
At the very least, it could pressure rivals to accelerate their own fast-charging solutions, and that could reshape infrastructure investments worldwide.
Venture capitalists burned by past EV startups might even see this as a fresh opportunity to back new charging networks and battery innovations.
Of course, all of this depends on execution.
BYD’s super e-platform chargers still need to prove themselves in real-world conditions, and the EV industry as a whole needs to decide whether these extreme speeds are worth the trade-offs in battery performance.
Here’s My Take
Whether or not BYD’s 1,000-kilowatt chargers live up to the hype, the EV charging race is heating up.
For EV owners, it could mean that long wait times for recharging could soon become a thing of the past.
And even though BYD’s path into the U.S. remains uncertain, it’s also true that companies that fail to keep pace risk falling behind.
That’s another reason why Elon’s pivot to robotaxis could be the best move Tesla makes this year.
One of the best moves you can make this year is to join me next week for an exclusive event I’m calling Panic 2025.
As you know, the final race to ASI or Artificial Super Intelligence is about to go into a full sprint.
And I believe it will trigger a full-blown panic in the AI market.
That’s why I’ve asked a special guest to join me to make sure you’re not blindsided when this panic occurs. Instead, we’ll show you how you could walk away from all this recent turmoil with the biggest gains of your life.
Click here now to reserve your spot.
Regards,
Ian KingChief Strategist, Banyan Hill Publishing
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