BYD says EVs have entered the ‘knockout round’ with next-gen tech rolling out
Global EV leader BYD believes new energy vehicles, including EVs and PHEVs, have entered the “knockout round” with gas-powered cars. BYD plans to more than double its overseas sales this year, as it aims for one million in 2025.
Let the “liberation battle” begin
After declaring a “liberation battle” against gas-powered cars earlier this year, BYD, or Build Your Dreams, is putting pressure on overseas rivals.
During an investor meeting on Wednesday, BYD’s CEO, Wang Chaunfu, said it will launch its next-gen hybrid tech offering over 1,200 miles (2,000 km) range. We reported earlier this month that BYD looks to crush gas-powered car sales with its newest platform.
Most BYD vehicles are based on its e-Platform 3.0, an advanced 8-in-1 electric powertrain with integrated Blade batteries.
By building nearly all vehicle components, including batteries, in-house, BYD has a major advantage over rivals. BYD can offer low-cost EVs, like the new Seagull, starting under $10,000 (69,800 yuan) and still make a profit.
Its next-gen DM-i system will enable an even more range at a lower cost. According to a new Yicai report (translated), Chaunfu said BYD will launch its next-gen DM-i platform in May.
BYD believes EVs, PHEVs entered the “knockout round”
Chaunfu added that he believes EVs and PHEVs have “entered the knockout round” and that the next two years will be critical for automakers to scale, reduce costs, and introduce new tech.
As new electric cars roll out in China, BYD sees joint venture brands (overseas automakers) market share falling from 40% to 10%. The 30% offers room for Chinese brands to grow.
BYD is using an “overseas + localization” strategy to expand the brand. For example, BYD is building a plant in Hungary that will “be Europe, for Europe.” BYD’s European leader said the plant will “be closer to customers, offering faster deliveries, and people will trust us more.”
Chaunfu said BYD aims to sell 500,000 vehicles overseas this year, more than double the 240,000 handed over last year. By 2025, BYD sees overseas sales reaching 1 million.
BYD’s first vehicle transport ship, the BYD Explorer No. 1, landed in Germany last month as the automaker expands its overseas footprint.
Meanwhile, after launching in Japan last year, BYD already accounted for 20% of Japan’s EV imports in January, a market dominated by Toyota.
The automaker launched a “liberation battle” with drastic price cuts and new lower-priced models earlier this year.
BYD says its main competition is gas-powered vehicles and joint venture brands. Several of its most popular EVs, including the Dolphin and Seagull, were updated with lower prices. Its cheapest EV, the Seagull, starts at just $9,700.
Electrek’s Take
BYD has already sent shockwaves throughout the industry with the new Seagull EV starting under $10,000.
Ford’s CEO Jim Farley called the Seagull “pretty damn good,” as he warned rivals. Farley said at the Wolfe Research Conference last month that if automakers fail to keep up with the Chinese, like BYD, “20% to 30% of your revenue is at risk.” In response, Ford is shifting from larger to smaller, more affordable EVs.
How will automakers react to a new platform that will cut costs even further? With new tech and models rolling out, BYD expects to steal even more market share from gas vehicles over the next few years.
Although many pit BYD and Tesla against each other because they are the leading EV makers, BYD sees Tesla as a respected industry partner. Its main target is gas-powered vehicles.
BYD is best known for its affordable EVs, such as the Dolphin, Atto 3, and Seagull, but it’s expanding into new segments, including mid-size SUVs and luxury models.
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According to a Tesla Semi customer, the electric truck program is suffering more delays and a price increase that is described as “dramatic.”
Tesla Semi has seen many delays, more than any other vehicle program at Tesla.
It was initially unveiled in 2017, and CEO Elon Musk claimed that it would go into production in 2019.
In late 2022, Tesla held an event where it unveiled the “production version” of the Tesla Semi and delivered the first few units to a “customer-partner”: PepsiCo.
More than 3 years later, the vehicle never went into volume production. Instead, Tesla only ran a very low volume pilot production at a factory in Nevada and only delivered a few dozen trucks to customers as part of test programs.
But Tesla promised that things would finally happen for the Tesla Semi this year.
Tesla has been building a new high-volume production factory specifically for the Tesla Semi program in a new building next to Gigafactory Nevada.
The goal was to start production in 2025, start customer deliveries, and ramp up to 50,000 trucks yearly.
Now, Ryder, a large transportation company and early customer-partner in Tesla’s semi truck program, is talking about further delays. The company also refers to a significant price increase.
California’s Mobile Source Air Pollution Reduction Review Committee (MSRC) awarded Ryder funding for a project to deploy Tesla Semi trucks and Megachargers at two of its facilities in the state.
Ryder had previously asked for extensions amid the delays in the Tesla Semi program.
In a new letter sent to MSRC last week and obtained by Electrek, Ryder asked the agency for another 28-month delay. The letter references delays in “Tesla product design, vehicle production” and it mentions “dramatic changes to the Tesla product economics”:
This extension is needed due to delays in Tesla product design, vehicle production and dramatic changes to the Tesla product economics. These delays have caused us to reevaluate the current Ryder fleet in the area.
The logistics company now says it plans to “deploy 18 Tesla Semi vehicles by June 2026.”
The reference to “dramatic changes to the Tesla product economics” points to a significant price increase for the Tesla Semi, which further communication with MSRC confirms.
In the agenda of a meeting to discuss the extension and changes to the project yesterday, MSRC confirms that the project went from 42 to 18 Tesla Semi trucks while the project commitment is not changing:
Ryder has indicated that their electric tractor manufacturer partner, Tesla, has experienced continued delays in product design and production. There have also been dramatic changes to the product economics. Ryder requests to reduce the number of vehicles from 42 to 18, stating that this would maintain their $7.5 million private match commitment.
In addition to the electric trucks, the project originally involved installing two integrated power centers and four Tesla Megachargers, split between two locations. Ryder is also looking to now install 3 Megachargers per location for a total of 6 instead of 4.
The project changes also mention that “Ryder states that Tesla now requires 600kW chargers rather than the 750kW units originally engineered.”
Tesla Semi Price
When originally unveiling the Tesla Semi in 2017, the automaker mentioned prices of $150,000 for a 300-mile range truck and $180,000 for the 500-mile version. Tesla also took orders for a “Founder’s Series Semi” at $200,000.
However, Tesla didn’t update the prices when launching the “production version” of the truck in late 2023. Price increases have been speculated, but the company has never confirmed them.
New diesel-powered Class 8 semi trucks in the US today often range between $150,000 and $220,000.
The combination of a reasonable purchase price and low operation costs, thanks to cheaper electric rates than diesel, made the Tesla Semi a potentially revolutionary product to reduce the overall costs of operation in trucking while reducing emissions.
However, Ryder now points to a “dramatic” price increase for the Tesla Semi.
What is the cost of a Tesla Semi electric truck now?
Electrek’s Take
As I have often stated, Tesla Semi is the vehicle program I am most excited about at Tesla right now.
If Tesla can produce class 8 trucks capable of moving cargo of similar weight as diesel trucks over 500 miles on a single charge in high volume at a reasonable price point, they have a revolutionary product on their hands.
But the reasonable price part is now being questioned.
After reading the communications between Ryder and MSRC, while not clear, it looks like the program could be interpreted as MSRC covering the costs of installing the charging stations while Ryder committed $7.5 million to buying the trucks.
The math makes sense for the original funding request since $7.5 million divided by 42 trucks results in around $180,000 per truck — what Tesla first quoted for the 500-mile Tesla Semi truck.
Now, with just 18 trucks, it would point to a price of $415,000 per Tesla Semi truck. It’s possible that some of Ryder’s commitment could also go to an increase in Megacharger prices – either per charger or due to the two additional chargers. MSRC said that they don’t give more money when prices go up after an extension.
I wouldn’t be surprised if the 500-mile Tesla Semi ends up costing $350,000 to $400,000.
If that’s the case, Tesla Semi is impressive, but it won’t be the revolutionary product that will change the trucking industry.
It will need to be closer to $250,000-$300,000 to have a significant impact, which is not impossible with higher-volume production but would be difficult.
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