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🚀 How the BYD turtle overtook the Tesla rabbit
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There is a new king in the auto business: the Chinese concern has overtaken Tesla in terms of sales of electric vehicles. It's a milestone for the company, which has become a symbol of China's technological dominance.
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After BYD's Seal sedan beat Tesla's Model 3 in a drag race, surprised experts were so disbelieving of the result that they even repeated the run. By the way,
Buffett (NYSE: BRKa) has been investing in BYD since 2008, and he rarely makes mistakes on the topic of technology.
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Tesla will publish business results for the fourth quarter on January 24, but it is already known that BYD sold 526,409 electric vehicles (over the year – 3 million), and Tesla, respectively, 484,507 and 1.8 million. In addition to «pure» electric auto, BYD also sold more than 400 thousand «hybrids».
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BYD Co Ltd (SZSE: 002594 (A-shares), SEHK: 1211 (X-shares)) has yet to convince the market of its leadership – so far China has provided the basis for its purchases. Wild import duties and various sanctions do not allow the Chinese to sell their products, for example, in the USA, where Tesla has a clear advantage in the domestic market. Moreover, Tesla is 10 times more expensive than BYD and earns almost three times more per car.
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Selling cheap electric cars has always been BYD's preferred strategy, but the company provides a better return on equity and invested capital. The company owns its own battery supply chain and offers a wider range of models at different price points, such as popular offerings at the lower end of the market.
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BYD already sells 5 models in Europe, and plans to bring 3 more to the market this year – the company intends to build its first European plant in Hungary. In addition, BYD is actively seeking consumers in Australia and New Zealand.
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Recently, Elon Musk, in his usual style, incorrectly mocked his rival. Now he needs to come up with something really effective to regain his position.
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Wait and see.
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Profits to y’all!