After Warren Buffett-backed Chinese electric vehicle maker BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF) dethroned Tesla, Inc. (NASDAQ:TSLA) as the market leader in terms of volumes sold in the fourth quarter, social media users quickly drew comparisons between the two companies. And CEO Elon Musk was quick to chime in with his own opinion.
What Happened: Tesla enthusiasts pointed out that BYD sells low-priced battery EVs solely in China and is yet to prove its credentials in Europe or North America.
YouTuber and blogger Alex Voigt said BYD is unlikely to sell at the same prices in these regions, and Tesla will likely continue to outsell the Chinese company once its $25,000 model is launched. The full-self-driving software, which gives Tesla a head start with respect to profit and margins, and its massive cost competitiveness, once FSD and Optimus become commercial, give the Musk-led company an edge, he said. The Tesla fan also sees the company as being able to sell at more attractive prices than any other rival.
Another Tesla influencer, going by the handle @MatHias8719, said Tesla and BYD are not comparable. He reasoned that the former is a hardcore technology company that now makes the most profits from cars and is poised to transition to a company that will rely more on its energy subsidy, FSD, and Optimus Bot. He termed BYD as a company manufacturing merely cars and batteries.
A third Tesla enthusiast made a comparison between the two companies on several metrics, including revenue, profit, number of employees, products, and factory count,, and concluded that Tesla is way better than BYD, as the latter sells “small to medium cars with low standard and bad safety features,” mostly in China and is not a believer in self-driving technology.
Musk chimed in and clarified regarding Tesla’s core mission. “Tesla is an AI/robotics company that appears to many to be a car company,” he said.
Tesla is an AI/robotics company that appears to many to be a car company
— Elon Musk (@elonmusk) January 3, 2024
See Also: Best Electric Vehicle Stocks
Why It’s Important: Tesla’s future revenue opportunity is enormous, provided it executes on its plans. That said, assigning too much value to the FSD, which has so far remained a questionable and half-baked technology, and other…
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