Back in 2011, Elon Musk, the head honcho at Tesla, was quite dismissive of the idea that China’s BYD could ever be a serious competitor. He couldn’t help but scoff at BYD, labeling their cars as lackluster and their tech as weak. Fast forward to today, and the tables have certainly turned. Now, it’s not just the downward spiral of Tesla’s stock, partly driven by a backlash against Musk’s political views, that’s got him worried. More significantly, Musk, alongside other Western car manufacturers, finds himself being left in the dust by BYD.
Just last week, BYD, a major player in the electric vehicle (EV) scene, rolled out an impressive new charging technology. This innovation, set to hit the market next month, promises to deliver a staggering 400km (about 249 miles) of driving range in a mere five minutes—about the time it takes to fill up a gas tank. Two of their new models, starting at 270,000 yuan (around £29,000), will showcase this cutting-edge tech, putting them on par price-wise with Tesla’s least expensive offerings in China. However, BYD has a significant edge, boasting a charging speed that reportedly outpaces Tesla’s by four times. This combination of advanced technology and competitive pricing is likely a big reason why BYD sells an impressive seven times more cars in China compared to Tesla.
Challenges like the lack of fast-charging infrastructure could slow BYD’s expansion into Western markets. However, this doesn’t detract from China’s formidable strides in technological innovation. It was only in 2015 that China launched its ‘Made in China 2025′ initiative, earmarking 10 strategic sectors, including EVs, for extensive development. By following a familiar growth strategy, similar to what the US once did, China transitioned from merely exporting raw materials to becoming a manufacturing juggernaut. This transformation relied on safeguarding domestic industries, importing foreign tech—sometimes through questionable means—and focusing heavily on exports. Drawing lessons from history, China leaned on tariffs, subsidies, and state investments to dominate sectors like steel, electronics, and now EVs.
When a nation rapidly positions itself as a leader in export markets, industrial supremacy becomes unavoidable. This often consolidates into a global stronghold over critical industries. With a robust foothold in the EV sector, China is poised to not just participate but lead, setting the terms for its technological future. Interestingly, they’ve achieved this at a fraction of the cost: BYD reportedly benefitted from Chinese government subsidies totaling about a quarter of the $15 billion subsidies Tesla received from US authorities.
The rationale for transitioning to electric vehicles is undeniable—they reduce emissions and lessen pollution while maintaining personal mobility. However, the climate crisis prompts a deeper inquiry: it’s not just about how we power our vehicles but whether our dependency on them is sustainable. Switching to EVs is crucial, but so is questioning whether we should strive for fewer car trips rather than just cleaner ones.
Even with its EV dominance, China’s 30,000-mile high-speed rail network offers an eye-catching alternative. On the flip side, Musk’s transport ventures often seem more like diversions. His high-speed Hyperloop system never aimed for completion; instead, its real achievement lay in stalling California’s high-speed rail plans. Similarly, his Boring Company is carving out a 68-mile underground route in Las Vegas, seemingly driven primarily by lenient regulatory oversight.
There’s an old quip about dictatorships: at least the trains stay on schedule. But can a democracy under the sway of oligarchs even manage that? China boasts extensive high-speed rail connectivity, while Musk has only a few tunnels under Nevada to show. However, so-called “authoritarian efficiency” isn’t the solution. A more capable and democratic government—the type Musk often critiques—is essential to reversing the United States’ ongoing decline in economic, industrial, technological, and governance competitiveness.
