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BYD Co Ltd (OTCPK: BYDDF) (OTCPK: BYDDY) Executive Vice President Stella Li said in an interview on Monday that the Chinese EV giant deems its U.S. rival Tesla Inc (NASDAQ:TSLA) as a partner more than competition.
What Happened: “Without them, I think the global EV market could not run so rapidly,” Li said in an interview with Yahoo Finance. “So we will respect them a lot. I think they are a partner and also they are like a way together, we can really help the whole world. To educate the market and push the market for transition.”
Even within BYD’s home ground, Li is not very concerned about the competition with Tesla. There is less than 15% overlap between BYD and Tesla customers and hence there is no need to convince buyers between Tesla and BYD, Li noted. While China is home and the biggest market for BYD, it is the second biggest market for Tesla after the U.S.
The real competition for BYD, Li said, is companies making combustion engine cars. “The more people jumping to produce EV is better for the industry,” she added.
BYD Eyeing U.S.?: The top executive also denied rumors that the company is looking to put a factory in Mexico only to enter the neighboring U.S. market. BYD is not looking to play in the U.S. just yet, Li said, citing complications including politics.
Automakers have been anxious about BYD’s investment in Mexico as a way of infiltrating the U.S. market with its cheaper EVs and subverting the high tariffs imposed on imports from China.
Tesla About BYD: Li’s comment on competition from Tesla is largely similar to Tesla’s senior design executive Franz von Holzhausen. In an interview with Shanghai Daily in January, the designer said that competition drives Tesla to do well.
"We need more EVs in this space. Our mission at Tesla is to really rid the addiction to fossil fuel and so we know we can't do it alone,” Holzhausen said.
However, days later, Tesla CEO Elon Musk warned against competition from China automakers during the company’s fourth-quarter earnings call. “Frankly, I think if there are not trade barriers established, they will pretty much demolish most other car companies in the world. So they’re extremely good,” Musk said.
In the last quarter of 2023, BYD took over Tesla in battery electric vehicle (BEV) sales by selling 526,000 BEVs, surpassing Tesla's global delivery count of 485,000. However, unlike Tesla which sells only BEVs, BYD also makes hybrids.
Photo via Shutterstock
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