00:00There's competitors now ramping up, and as you're familiar with BYD, which is also on the West Coast,
00:04I think they're ramping up production of their electric vehicles.
00:07There he is, trying to compete. Why do you laugh?
00:10That laugh you just heard? It might be the most expensive chuckle in business history.
00:15In 2011, Elon Musk couldn't contain his amusement when asked about Chinese automaker BYD.
00:21Have you seen their car, he snickered, dismissing them completely.
00:24Have you seen their car?
00:26I have seen their car, yes.
00:27Fast forward to today, and that same joke of a company is outselling Tesla by five times in the world's largest EV market.
00:35But the most shocking part isn't how wrong Musk was.
00:38It's how this overlooked Chinese competitor managed to completely flip the script while Tesla wasn't looking.
00:49In January of this year alone, BYD delivered a staggering 296,000 vehicles,
00:55nearly five times more than Tesla's China sales of just 63,238 units.
01:01Let that sink in.
01:03The not-very-strong technology is now outselling Tesla by a massive margin.
01:07But it gets worse for Tesla.
01:09BYD didn't just win a single month.
01:11They've completely flipped the script on who's dominating the global EV market.
01:16In 2024, BYD reported annual revenue of $107 billion, leaving Tesla in the dust at $97.7 billion.
01:25The irony is almost painful.
01:27The company whose cars made Elon laugh is now counting more money than him.
01:31So what exactly happened behind the scenes to cause such a dramatic power shift?
01:36You see, while Tesla was busy putting all its eggs in the pure electric basket, BYD played it smarter.
01:42They offered both fully electric and hybrid vehicles, making the transition to cleaner transportation more accessible for average consumers who weren't ready to go all electric.
01:52Think about it.
01:53When people worry about charging stations and range anxiety, a hybrid is the perfect gateway drug to eventual full EV adoption.
02:01BYD understood the psychology perfectly, while Tesla kept telling customers to adapt or get left behind.
02:07Plus, BYD's aggressive expansion strategy should be taught in business schools.
02:13They launched affordable models that directly compete with Tesla's lineup, and often at half the price.
02:18Their latest budget-friendly car goes head-to-head with the Model 3, which had long-dominated Chinese EV sales.
02:25But now, Tesla's market share is shrinking, while BYD's is exploding.
02:29And BYD's self-driving technology rivals Tesla's, but BYD includes it with their vehicles, while Tesla charges customers thousands of dollars extra for their autopilot features.
02:41So when you're paying less for a car that includes what the competition charges premium prices for, what would you choose?
02:48While BYD was perfecting their product strategy, another factor was quietly destroying Tesla's once-untouchable position,
02:55and it had nothing to do with battery technology or manufacturing prowess.
03:00The thing is, while BYD was laser-focused on building better, cheaper cars, Tesla was getting dragged into political drama.
03:08Elon Musk's close relationship with U.S. President Donald Trump might have given him some White House lawn photo ops,
03:15but it alienated Tesla's core customers.
03:17The eco-conscious liberals who championed electric vehicles in the first place.
03:32Think about Tesla's brand image five years ago.
03:35It stood for progressive climate-conscious innovation.
03:38Now, many former Tesla enthusiasts see Musk as a divisive figure who's more interested in political influence than saving the planet.
03:46There are even reports of vandalism against Tesla vehicles and protests at their showrooms.
03:51Found out Monday his vehicle was vandalized while parked at the company's Linwood dealership for service.
03:56Police photos show multiple vehicles were targeted, with similar messages aimed at Tesla CEO Elon Musk,
04:03who joined President Donald Trump at the White House on Tuesday.
04:07Meanwhile, BYD stayed completely out of politics.
04:10No Twitter wars, no controversial statements.
04:12Their sole focus? Making better cars at lower prices, while Tesla was busy turning customers into political opponents.
04:20If politics and trade wars weren't problematic enough for Tesla,
04:23there's another battlefront where they're rapidly losing ground.
04:26The technology race itself.
04:30Tesla's fast-charging technology takes about 15 minutes to deuce up your battery.
04:34Pretty impressive, right?
04:35Well, BYD just blew that out of the water with their new battery that charges in just 5 minutes and delivers 400 kilometers of range.
04:44That's not just an incremental improvement.
04:46It's a complete game-changer that makes Tesla's tech look outdated.
04:50Even more impressive, BYD's latest hybrid powertrain can take you from New York to Miami without refueling.
04:56That's 1,300 miles on a single tank.
04:59Double what competitors like Toyota can offer with their hybrids.
05:02With superior technology now in their arsenal, BYD's next move was inevitable,
05:08taking their winning formula global while Tesla scrambles to defend its home turf.
05:13In 2024 alone, BYD exported over 417,000 vehicles to international markets,
05:20a number they're aiming to double this year.
05:23The company is now selling cars in more than 70 countries across Europe, Southeast Asia, Australia, Latin America and more.
05:31They're building factories in Thailand, Hungary, Brazil and Indonesia,
05:37creating a global manufacturing network that could soon make Tesla's operations look small in comparison.
05:44Europe, once Tesla's playground, is now seeing BYD sales explode.
05:49Even with the European Union slapping extra tariffs on Chinese EVs, BYD still manages to undercut competition while maintaining hefty profit margins.
05:59Why?
06:00Because they're making an estimated Ā£14,300 profit on each CLU EV sold in Europe,
06:0711 times more than the Ā£1,300 they make on the same model in China.
06:12And if you're wondering how BYD is winning, look at the numbers.
06:15Their most groundbreaking sedans start at around $14,000.
06:19Compare that to the Toyota Prius, America's best-selling hybrid, which starts at $28,000.
06:25BYD is literally selling future tech at half the price of today's technology.
06:29Even more telling, the BYD Atto 3 sells for $19,283 in China, but goes for $42,789 in Germany.
06:40And it's still considered competitive at that higher European price.
06:44That's how much room BYD has to play with their pricing while maintaining profitability.
06:49These price advantages haven't just given BYD a competitive edge.
06:53They've forced even Musk himself to publicly acknowledge what he once ridiculed.
06:58In January 2024, during a Tesla earnings call,
07:02Musk finally admitted what had become obvious to everyone.
07:05He stated that Chinese EV makers could pretty much demolish
07:09most other car companies in the world unless stronger trade barriers were put in place.
07:14Our observation is generally that the Chinese car companies are the most competitive car
07:19companies in the world.
07:20They will pretty much demolish most other car companies in the world.
07:24So they're extremely good.
07:27As Musk's tone has shifted from mockery to concern, the biggest question isn't about
07:32the past.
07:33It's about where this rivalry goes from here.
07:36While Tesla still enjoys strong brand recognition, the competition isn't just catching up, it's
07:41pulling ahead.
07:42The video of Musk laughing at BYD has become a textbook example of underestimating your competition
07:48and letting arrogance cloud your judgment.
07:50As BYD continues its aggressive global expansion and technological innovation, Tesla faces the
07:56very real possibility of becoming just another player in a market it once dominated.
08:02In 2011, Elon Musk laughed at BYD.
08:04In 2025, BYD is having the last laugh.
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