Written by Bryan Lutz, Editor at Dollarcollapse:
Every four centuries or so, the world changes.
The dominant nation begins to decline while the another nation picks up the pace.
If you want to know watch how this happens, the easiest examples are seen through the production of new technologies.
Ray Dalio explains in his video, below:
For example, the dominance of Chinese electric vehicles.
In 2022, China set precedence.
The country now produces more electric vehicles than every other country on earth, combined.
What’s even more telling is that the cars are admittedly much more higher quality than anything the United States produces. That includes Tesla.
Mish Shedlock recently shared this article where the All-American CEO of Ford Motors admits Chinese EVs outperform, then Mish shares the stats:
Ford CEO: China’s EV Costs, Tech, and Quality “Far Superior” to the West
To repeat “Drivers get in the car and their phone pairs automatically, and an AI companion equivalent to ChatGPT handles everything from navigation to entertainment. The vehicles also have facial recognition that knows which seat someone is in and adjusts media preferences.“
The Western manufacturers do not have that at any price.
BYD Pricing
In China, BYD offers a range of electric vehicles (EVs) at various price points, with some models starting under $10,000. For example, the BYD Seagull EV has a starting price of 69,800 yuan (approximately $9,555) and can be found with discounts down to 55,800 yuan (about $7,780). The company also offers more premium models like the Han EV, which starts at around $32,800.
- “God’s Eye” Technology:BYD has equipped many of its models with advanced driver-assistance systems, including its “God’s Eye” technology, even on lower-priced vehicles.
- Price War Concerns:BYD’s aggressive pricing has triggered concerns about a potential price war in the Chinese EV market, prompting warnings from industry associations.
- Model Variations:BYD offers various trims and configurations for each model, allowing customers to choose options that fit their budget and needs.
- BYD Seagull: Starts at 69,800 yuan (around $9,555) and has been discounted to 55,800 yuan (~$7,780).
- BYD Seal 06 EV: Launches at 109,800 yuan (approximately $15,300).
- BYD e7 EV Sedan: Priced at $14,400, according to CarNewsChina.com.
- BYD Han EV: Extended-range version starts at 229,800 RMB (approximately $32,800).
- BYD Atto 2 (Yuan Up): Starts at around 100,000 yuan (approximately $20,000) in China.
The above pricing details from AI.
Imagine buying a car for about $7,780 or a luxury EV for around $32,800.
Why Is BYD So Cheap in China?
Given that both BYD and Tesla are manufacturing in China, with the same labour costs and similar public subsidies, the explanation for BYD’s lower manufacturing costs is all about manufacturing process, product design, and vertical integration. BYD just straightforwardly sets up cheaper manufacturing processes
Technology
BYD leads in battery tech with its LFP Blade Battery, which is safer, more durable, and supports ultra-fast charging (400 km range in 5 minutes). Its 10C charging rate outpaces Tesla’s Superchargers (~275 km in 10 minutes).
The BYD Blade Battery
BYD explains the Blade Battery and its Impact on the EV Industry.
Unrivaled Safety – The Most Secure EV Battery Ever Built
Extreme Fire Resistance – Unlike traditional batteries that can overheat and explode, the Blade Battery remains stable even under extreme conditions.#Puncture-Proof Protection – Passed the nail penetration test without catching fire.
Longer Lifespan & Superior Durability
4X the lifespan of traditional lithium-ion batteries.Lasts over 1 million km (3,000 charge cycles), making it one of the most durable EV batteries ever created.
Does Tesla Use BYD Batteries?
Yes, Tesla does use BYD batteries in some of its vehicles, specifically the Model Y produced at the Berlin gigafactory. These batteries are BYD’s Blade Battery, which are lithium iron phosphate (LFP) cells. This partnership allows Tesla to increase charging speeds and diversify its battery supply chain.
The above answer from AI.
Blade Batter Pros and Cons
- Pros:
- Cost-effective: LFP batteries are generally cheaper to produce than NCM batteries.
- Safer: LFP batteries are more thermally stable and less prone to thermal runaway.
- Longer lifespan: LFP batteries can typically handle more charge cycles than NCM batteries.
- Cons:
- Lower energy density: LFP batteries have a lower energy density compared to NCM batteries, meaning they store less energy per unit of weight or volume.
- Potentially lower performance: Lower energy density can lead to reduced range or the need for larger battery packs.
BYD Europe
- Sales Surge: BYD’s EV sales in Europe saw a significant increase, with registrations jumping by 169% in April compared to the previous year, according to Electrek.
- Outpacing Tesla: In April, BYD’s EV registrations (7,231) surpassed Tesla’s (7,165), marking a notable shift in the European EV market.
- European Headquarters: BYD is establishing its European headquarters in Budapest, Hungary, with plans to create 2,000 jobs.
- New Models: BYD is launching new models like the Dolphin Surf, a compact electric car, with a starting price of €22,990 in Germany.
- Partnerships: BYD is forming partnerships with European companies like voestalpine, a steel manufacturer, to support its European expansion.
- Market Penetration: BYD is outselling established European brands like Fiat, Dacia, and Seat in some countries.
- Overall: BYD’s rapid growth in Europe demonstrates the increasing competitiveness of Chinese automakers in the global EV market. While facing challenges like potential tariffs, BYD is aggressively expanding its presence through new models, partnerships, and investments.
Here’s one example from Xiaomi, which features:
- $35,320
- 0–100 km/h sprint in 3.23s
- top speed of 253 km/h
- 835 km (519 mi) CLTC range.
This EV from Xiaomi , puts Tesla to shame.. the USA has no idea what’s really happening in China
A Chinese Mobile and Home Technology giant – Xiaomi just made a record in auto industry!
Receiving 200 000 orders in just 3 minutes. pic.twitter.com/34sOUXFGCE— Yan.x | ॐ (@euphorio_) June 28, 2025
Ford’s CEO even goes on to descrive Chinese EVs as “the most humbling thing I have ever seen.”
He even owns one himself.
Quartz reports:
Ford’s CEO calls China’s EV dominance ‘the most humbling thing I have ever seen’
“It’s the most humbling thing I have ever seen. Seventy percent of all EVs in the world, electric vehicles, are made in China,” Farley said Friday at the Aspen Ideas Festival, according to Business Insider.
“They have far superior in-vehicle technology. Huawei and Xiaomi are in every car,” Farley said. “You get in, you don’t have to pair your phone. Automatically, your whole digital life is mirrored in the car.”…
…”I don’t like talking about the competition so much, but I drive the Xiaomi,” Farley said on a podcast last year. “We flew one from Shanghai to Chicago, and I’ve been driving it for six months now, and I don’t want to give it up.”
The comments come as Ford is seeing struggling EV sales amid declining market interest. Despite the company reporting a 16% increase in year-over-year sales in May, its electric vehicle sales have nosedived, with a 25% overall decrease in May thanks to a precipitous 41.7% drop in sales for its F-150 Lightning EV. Last year, the automaker largely refocused from EVs to hybrid cars. Farley said in 2024 that people shouldn’t think of plug-in hybrid cars as a transition to fully electric vehicles — and instead see them as a permanent class of cars here to stay.
If you want a taste of the luxury competition Ford is facing, here it is.
