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Tesla and BYD Are Peers - Working Together To End the ICE Industry

Tesla and BYD may be separate companies - but they are actually peers that are working together to end the ICE industry.
Tesla and BYD Are Peers - Working Together To End the ICE Industry

Tesla and BYD - the Two EV Titans

Tesla and BYD may be separate companies that are building vehicles - electric vehicles - as part of their business, but they are also allies. While in some sense they may be competitors, such as the Model 3 and the BYD Seal, they are more peers than anything else.

Tesla began the entire shift to EVs with the original Tesla Roadster and as time went on and Tesla continued to show growth and success, other companies realized that they must start to build EVs to remain relevant.

BYD is one such company. Warren Buffett saw the potential in BYD by investing a large sum of money, showing an 8% ownership stake. The interesting thing is that Warren Buffett has still not invested in Tesla - and probably won't until Tesla gets to a more stabilized share price and price/earnings that is lower.

On the one hand, you have Tesla and Elon Musk - the visionary CEO - leading the EV revolution and on the other side, you have BYD, which is making batteries and vehicles, just like Tesla is. In fact, BYD supplies some Tesla vehicles with batteries!

BYD is dominant, primarily in China, but is also extending its vehicle lineup to Europe. Tesla plans to grow globally. I recently advocated for Tesla to tap into the Japanese market, as Tesla is relatively bare there.

The way I see it is that eventually, gas is going to run out AND gas used for fuels in vehicles is a polluting source of energy and just doesn't make sense to use for the health and environment of the earth.

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Tesla and BYD Will Continue to Work Together

Tesla cannot make enough batteries for its vehicles presently and is going to have to use other companies like CATL and BYD to get batteries.

BYD even said this about Tesla:

“Tesla is our very respected industry peer. It is also our client,” Li said, adding, “I think this market is very large. It’s not that we must surpass them, or they must surpass us. Instead, BYD and Tesla together, or more new energy vehicle brands together, we need to think about how to increase the new energy vehicle ‘cake.'”

Yunfei Li is the general manager of branding and public relations at BYD. Tesla is regarded as an ally to BYD - even if they are "rivals" or "competitors".

BYD is making very low cost EVs, and Tesla is on the path to doing that with the upcoming compact car. Eventually, there is going to be a 200-mile range EV for just $5,000. At that point, how can someone buy a gas car?

I expect Tesla to continue to work with BYD, as BYD is a supplier for Tesla with its blade battery pack for its Model Y vehicle. The BYD blade battery is an LFP battery (lithium iron phosphate) that is packaged in a long, blade-like format.

Using these blade batteries helps Tesla achieve faster charging and increases the total battery supply for Tesla.

This is an alliance that will likely continue for years to come and is beneficial to both companies. As both companies continue to drive down costs and make better and more affordable EVs, the ICE industry will eventually collapse.

In Other Tesla News: Getting Launched In An Original Tesla Roadster - The Moment That Changed Everything For Me About Tesla

Are Tesla and BYD allies, and should they work together? 

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Hi! I'm Jeremy Noel Johnson, and I am a Tesla investor and supporter and own a 2022 Model 3 RWD EV and I don't have range anxiety :). I enjoy bringing you breaking Tesla news as well as anything about Tesla or other EV companies I can find, like Aptera. Other interests of mine are AI, Tesla Energy and the Tesla Bot! You can follow me on X.COM or LinkedIn to stay in touch and follow my Tesla and EV news coverage.

Image Credit: DALL-E AI

Article Reference: Sawyer Merritt on X

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