Any notion that Warren Buffett will buffet Tesla upside the head, with mighty BYD’s expansion into EVs and battery storage, is based on several layers of folly:
1. Battery storage is a barely-tapped ocean of opportunity. There is room for many companies to prosper in that space, as the world shifts to renewable energy and becomes reliant on battery backup.
2. EV proliferation benefits Tesla. That’s why Tesla opened its patents, remember? Tesla-killers in the press are Tesla allies in the real world, as the public learns to wrap its head around cars with plugs.
3. Cheapo Chinese cars are absolutely necessary to prime the EV pump in China, where EV adoption is super slow. No premium American brand can single-handedly change the mindset of the world’s biggest auto market. It takes BYD and the smaller other local yokels to provide an EV-friendly backdrop. If a few of your colleagues and neighbors have EVs, then obviously life with an EV is indeed practical. You can then safely aspire to a Tesla without fear of being committed to a Chinese mental health institution.
4. And aspiring to Tesla will indeed come naturally. Chinese consumers don’t trust “made in China,” be it cars or otherwise. And in the rest of the world, Chinese cars are still thrown in the same scrap heap with Indian cars. Cheap goes only so far.
5. Tesla moves faster than BYD. Given a couple of years for each company to step up its game, Tesla will accomplish more. In fact, as this post goes to press, we find another improvement is imminent — this time to “end range anxiety.” Will it boost range, or improve trip assistance? Or both? The last cliffhanger was the unveiling of the “D.” It disappointed initially, causing a crater in TSLA’s stock price, but now the “D” has indeed proven its might.