BYD: The Leading Non-Tesla Electric Vehicle Manufacturer

Chinese electric car manufacturer BYD is gaining ground on its American rival, Tesla. BYD's shares rose after it announced that it expected third-quarter profits to more than double compared to the previous year. In terms of quarterly production, BYD is now ahead of Tesla, although it still lags behind in global sales. BYD's success reflects the rapid growth of China's auto industry, which overtook Japan this year to become the world's largest exporter. This comes as China's economy struggles with a property crisis and high unemployment. However, Beijing's tensions with export markets, including the US and EU, pose a challenge to the global adoption of Chinese electric vehicles. BYD's advantage lies in its origins as a battery company, allowing it to produce in-house and save on costs. In contrast, competitors like Tesla rely on third-party manufacturers for batteries. Analysts credit Tesla with popularizing EVs in China, but BYD has surpassed it in terms of sales. This shift is likely to continue as green incentives expand and legacy carmakers struggle to compete. The European Commission is even considering tariffs on imported Chinese EVs to protect EU manufacturers. However, BYD's affordable and green cars are finding success in Europe, which is grappling with inflation and energy costs. Overall, China is well-positioned to offer affordable EVs to the global market.