China has been heavily subsidizing its green tech sectors, but homegrown EV company BYD is a favorite child of the bunch, receiving enormous subsidies to the tune of at least $3.7 billion, according to a new German study.
BYD received this lofty sum in direct government subsidies as part of the Chinese government’s push to lead the world in EVs and other clean tech, according to a new study first reported by Bloomberg.
Germany’s Kiel Institute for the World Economy reported that BYD received €220 million in 2020 to €2.1 billion only two years later. The study added that BYD also benefits from the support for local battery manufacturers and federal rebates for EV buyers.
None of this is surprising, but it is the first time we’re seeing a figure attached to the subsidy claims, and one showing that BYD had been singled out for special privileges compared to other companies such as Geely, SAIC, and Tesla’s and VW’s joint ventures.
Back in October 2023, Europe launched its formal investigation into the Chinese EV industry, as European companies are struggling to compete with the cheap, high-tech Chinese imports – made by cheap labor – entering the European Union.
The European Commission visited BYD, Geely, and SAIC to gather intel, as part of its probe into what it says are both subsidies and bank lending campaigns from Beijing that fueled the outsize growth in China, with fears that China is building EV plants far beyond levels needed for domestic demand. After months of investigation, the EC says that yes, it has in fact found evidence of China not playing fairly and has been looking for ways to remedy the problem including slapping retroactive tariffs on Chinese EVs.
According to the Kiel Institute, China handed out direct payments to virtually all of its listed companies, including wind, solar, and railway – putting its aid at as much as nine times higher than in large EU and OECD countries such as Germany and the US, the report said.
Meanwhile, the US and Europe have been tightening their rules on Chinese cars and EV parts being sold in their countries, with tariffs so high in the US that China has turned its focus on other areas, namely South America, Asia, and Europe. For its part, the European Union has established a €40 billion innovation fund to compete with China and the U.S. Inflation Reduction Act.
“China’s subsidy policy has been a controversial issue for years: European industries often struggle to compete with Chinese counterparts on price,” says Dirk Dohse, research director at the Kiel Institute and co-author of the study. “However, without China’s subsidized technology, products crucial for Germany’s green transformation would become more expensive and scarce as well.”
BYD reported a net income of $4.16 billion (30.04 billion yuan) compared to the estimated $4.29 billion (30.94 billion yuan), giving it considerable padding to undercut the competition with aggressively low pricing, which we’ve reported many times here at Electrek. The company reported a more than 80% rise in net profit last year, and it is showing no signs of slowing down.
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Tesla (TSLA) has introduced a new direct discount for the Model Y in China as the latest of a series of incentives to boost demand during this critical end-of-quarter push.
The automaker regularly offers discounts at the end of every quarter, but the incentives to boost demand have been the most wide-ranging ever this quarter.
Over the last month, we have been documenting the many sale incentives and discounts that Tesla has put in place to ensure it creates the demand for a record quarter.
Tesla aims to deliver a record number of more than 515,000 vehicles in Q4 in order for its sales not to be down for the whole year. That’s ~30,000 more vehicles than Tesla’s last record quarter, which was Q4 2023.
And everywhere, Tesla is heavily subsidizing loans with lower interest rates. That has been the main incentive in China, Tesla’s biggest market, until now.
Tesla’s New Discount in China
Today, Tesla announced that it is offering a ¥10,000, the equivalent of $1,380 USD, discount on the final payment for new Model Y vehicles:
The new discount can be combined with Tesla’s subsidized 0% interest financing, which has been Tesla’s main incentive in China all year.
Electrek’s Take
Based on insurance data, Tesla is tracking ahead of last year’s deliveries in China, but it is going to need to beat its last record by a significant margin to make sure not to be down for the whole year.
Model Y is Tesla’s most popular vehicle, but Tesla is also going against the expectation of the design refresh coming early next year, which can negatively affect demand.
This discount is likely to combat that and maintain Tesla’s current good momentum in China.
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We now have more details on the massive recall, which just keeps growing. Hyundai and now Kia are recalling more than 208,000 electric vehicles in Canada and the US to fix a problem with the loss of driving power, which can increase the risk of a crash.
For the second time this year, the automakers are recalling huge swathes of EVs and other “electrified” vehicles in North America, citing concerns about a loss of driving power, the National Highway Traffic Safety Administration (NHTSA) said on Friday.
In the US, Hyundai is recalling 145,235 EVs, including the 2022 through 2024 Ioniq 5, the 2023 through 2025 Ioniq 6, GV60 and GV70, and the 2023 and 2024 G80. In Canada, Hyundai is recalling 34,529 vehicles that were produced between March and November of this year, according to Automotive News Canada.
As for Kia, the recall includes close to 63,000 Kia EV 6 vehicles from 2022 through 2024 in the US, but the company has yet to offer details on its Canada recall.
It looks like the issue stems from “the integrated charging control units in these vehicles, which may become damaged and fail to charge the 12-volt battery. This malfunction could lead to a complete loss of drive power, posing safety risks for drivers,” the NHTSA stated.
Back in March, Hyundai, Kia, and Genesis issued a similar recall for 147,110 electric vehicles – that recall centered, again, around damaged integrated charging control units failing to charge the battery.
The South Korea automaker has said that all owners of affected vehicles will be notified by letter mail on the next steps to take. This will involve bringing your vehicle to one of the company’s dealers to inspect and replace the charging unit and its fuse if necessary, along with performing a software update for the charging units.
Importantly, no crashes, injuries, fatalities, or fires due to this issue have been reported in the US or Canada, Hyundai reported.
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A group of Tesla vehicles spotted under covers at the automaker’s test track at the Fremont factory is raising some questions.
Tesla has a very small test track on the ground of its first factory, Tesla Fremont, in California.
Now and again, people fly drones over the factory and catch glimpses of new cars being tested. Youtuber ‘Met God in Wilderness’ is one of those drone pilots who regularly fly over the factory and while he didn’t catch vehicle being tested, he did catch some curious vehicles under covers next to the track:
The vehicles are all covered, and therefore, it’s hard to tell exactly what they are, but the different shapes are intriguing and raise some questions.
It looks like three, maybe four, different kinds of vehicles:
We know that Tesla is working on three new specific vehicles: a Model Y design refresh, and two new cheaper models based on Model 3 and Model Y.
All three vehicles are expected to be unveiled early next year.
Electrek’s Take
At the risk of stating the obvious, getting much information from vehicles hidden under cover can be hard. It’s even possible that some of those have shape camouflage, which is sometimes used by automakers – although I don’t remember Tesla ever using that.
So here are my best guesses. Take them for what they are: guesses.
The most interesting ones to me are the first two on the left in the picture above. The last vehicle on the left looks like it could be a smaller Model 3.: