When China’s BYD recently overtook Elon Musk’s Tesla as the global leader in sales of electric vehicles, casual observers of the auto industry might have been surprised.

But what’s caught other carmakers around the world off-guard is something else about BYD, which is backed by Warren Buffett’s Berkshire Hathaway: its low prices.

“No one can match BYD on price. Period,” Michael Dunne, CEO of Asia-focused car consultancy Dunne Insights, told the Financial Times. “Boardrooms in America, Europe, Korea and Japan are in a state of shock.”

BYD can keeps its costs low in part because it owns the entire supply chain of its EV batteries, from the raw materials to the finished battery packs. That matters because a battery accounts for about 40% of a new electric vehicle’s price.

  • @[email protected]
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    8911 months ago

    The American car companies haven’t exactly been stellar with regards to quality, reliability, and safety lately either.

    • @Vash63
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      911 months ago

      My VW-built EV seems pretty high quality. China and USA aren’t the only game in EVs.

        • UltraMagnus0001
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          311 months ago

          Mazda non turbos are very reliable. My 2014 Mazda 2.5l only ever needed oil changes, tranny fluid changes and now at 130k miles I have to do the front control arms. My VW 2010 Passat wagon 2.0tsi needs constant maintenance, like carbon cleaning, water pump dsg fluids, pcv and so on, but I have 200k+ miles on it with no oil burning and original suspension parts.

        • @TheDarkKnight
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          111 months ago

          Didn’t the Japanese car industry only just finally jump in the EV game?

            • @TheDarkKnight
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              211 months ago

              They are, they just wasted a lot of time with Hydrogen tech instead building up their EV capabilities

    • bluGill
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      211 months ago

      Strange how that reputation persists even when they tak, a car made by someone else and put their name on it.