Electric Vehicle Market Update

Chinese automaker BYD has once again surpassed Tesla in the electric vehicle (EV) market. On Monday, the company unveiled a new battery system that can charge an electric vehicle in just five minutes, comparable to the time it takes to refuel a traditional car. This achievement has been a long-standing goal for the industry, which has struggled to overcome charging hurdles that have deterred potential buyers.

Charging Capabilities

BYD claims that its new battery system can provide 249 miles of range in just 5 minutes in its Han L sedan. In comparison, Tesla’s best charging rate can add 170 miles of range in 15 minutes at one of its high-voltage Superchargers. Elon Musk had previously invested heavily in in-house battery development to improve range and performance, but the results have been underwhelming, with the 4860 battery failing to meet expectations.

Market Reaction

The news sent BYD’s stock soaring, reaching a market value of approximately $158 billion, with a 58% increase so far this year. Despite concerns that fast charging could shorten the lifespan of EV batteries, there is currently little evidence to support this claim.

Industry Insights

The CEO of major Chinese battery maker CATL previously stated that Musk "doesn’t know how to make a battery" in an interview with Reuters. BYD, now the leading EV maker in China, was founded in 1995 as a battery manufacturing company and later expanded into the automotive market. The company also assembles iPads for Apple and produces EVs at various price points, including the affordable Seagull model starting at $9,700.

Global Expansion

BYD has been expanding its presence globally, entering markets in Europe and South America, and creating local jobs. This move is seen as a demonstration of China’s soft power, showcasing the company’s ability to succeed outside of its domestic market. In contrast, Musk is pushing to eliminate subsidies that have helped the US automotive industry transition to EVs, a move that critics argue will handicap American companies.

Transition to EVs

The transition to EVs has been slower than expected, with charging infrastructure and available chargers often being inadequate. However, fast-charging capabilities like those offered by BYD could alleviate concerns for drivers who are deterred by long charging times. BYD has also announced plans to add advanced self-driving features to all its vehicles, further leapfrogging Tesla in terms of technology and price.

Tesla’s Struggles

Tesla’s current valuation has been questioned, given its struggling sales, dated vehicle lineup, and delayed autonomy features. Musk’s involvement in the Trump administration has also led to intense backlash, resulting in a 40% decline in Tesla’s stock value since the start of 2025. Perhaps if Musk focused more on Tesla, the company would be further ahead in the EV market, rather than being eclipsed by BYD.