Chinese electric vehicle (EV) manufacturers, primarily BYD, are not only surpassing Tesla in affordable EV production, but are also making significant strides in autonomous driving technologies.
BYD has revolutionized China’s smart EV market. While the company offers its advanced driver assistance system, “God’s Eye,” for free, Tesla sells its Full Self-Driving (FSD) package in the same segment for approximately $9,000 in China.
An investor familiar with both systems states that BYD’s system is more capable than Tesla’s.Other Chinese brands like Leapmotor and Xpeng are also becoming unrivaled in terms of price-performance by adding advanced driving assistance systems to their around $20,000 EV models. Moreover, these companies receive significant support from the Chinese government.
Technically, the Chinese are also challenging Tesla. While BYD is investing in multiple sensors such as radar and lidar, Tesla is pursuing a strategy based only on cameras and artificial intelligence.
This difference calls into question Tesla’s “sensor-light” approach. This increasing competition is putting pressure on Tesla CEO Elon Musk. While Tesla’s global sales are slowing, the company is preparing for a long-delayed robotaxi trial in Austin, Texas. Tesla’s shift away from mass-market EV production towards fully autonomous robotaxis forms the basis of the company’s $1 trillion market capitalization. Tesla declined to comment on its Chinese competitors. However, Musk had previously openly acknowledged this threat, saying, “Chinese car manufacturers are the world’s strongest competitors.” Conclusion: Chinese manufacturers are now surpassing Tesla not only in terms of price but also in technology. A leap in autonomous driving could shift the center of competition from Silicon Valley to Shenzhen.
