BYD is slapping the EV industry around like a gorilla, Tesla simply cannot compete in any meaningful way. Waymo has achieved profit per unit and people are happy to see driver-less taxis in their city and pay for the service.
Tesla also cannot justify valuations based on automotive sales/subscriptions alone - they were always going to have to pivot.
They're in a tight spot and they need to do something drastic.
"In the dormitories of the Jinjiang Group, the company hired by BYD to carry out the work, there were no mattresses on the beds, and the few toilets served hundreds of workers in extremely unhygienic conditions. The workers also had food stored without refrigeration.
The Brazilian Labor Prosecutor's Office (MTP) also accused the companies of withholding the workers' passports and keeping 60% of their wages; the remaining 40% would be paid in Chinese currency."
My understanding is that the main reasoning for this isn't revenue growth but rather one of the big triggers for his $1T pay package (10 million FSD subscriptions).
But at one time they sold the majority in what many saw as a disruptive new replacement for what those other companies did.
They were poised like Apple which sold relatively few iPhones in the first few years compared to the other companies, all of which are gone now. But Tesla squandered that advantage.
Tesla can compete with BYD all right. They have a better brand, they are still a status symbol. They could totally build the best cars if they wanted to.
But competing with BYD would mean becoming "just a car company". And that's what Tesla can't do. Too many promises have been made, the stock's been pumped too high, and there is no way a just-a-car company can justify that market cap. Their only way is to go for the moonshot now. Maybe once the moonshot fails, stock goes down to "normal", and Tesla can compete with BYD.
They won't prosper in China which has the biggest car market and better cars, that also happen to be cheaper. In the US, the second largest car market, they reduced their market in half. In Europe their sales are shrinking even as total EV sales increase. In India and Brazil, also in the top 6 largest car markets, their cars are too expensive so they sell a few *dozen* cars per year.
Even if they tried to be a car company with correct valuation they'd have nothing to offer to most of the market.
Most of the moonshot bet relate to AI becoming good so the self driving and robots work. It's not impossible although who knows when exactly, or if the Musk companies will get ahead of the competition.
I was in the market for an EV due to great tax advantages. I assumed BYD would be the sweet spot, but test drove a Tesla for comparison.
I ended up with the Tesla. It is hands down the better vehicle and I'd be very surprised if anybody seriously thought otherwise. There wasn't very much in it price wise so that wasn't a factor.
The BYD (Sealion 7) wasn't even a bad car. It's a good car. But it's inspired and just a little gaudy. It felt like a conventional SUV with an EV powertrain. The Tesla felt like the future.
Funny that you say the BYD was tasteless. I definitely agree, and it's something that can be said about much Chinese-made stuff.
In French we have the word "chinoiserie" which is used to describe objects with a certain aesthetic, reminiscent of Chinese art. It is used derogatively to mean something lacks taste even if it looks sophisticated at first sight.
Tesla also cannot justify valuations based on automotive sales/subscriptions alone - they were always going to have to pivot.
They're in a tight spot and they need to do something drastic.