China’s BYD could kill Tesla

Tesla and its hyperactive boss, Elon Musk, are having a rough month. On both sides of the Atlantic, there have been protests against the “Nazi-mobile” and the “Swasti-car.” The electric vehicle (EV) manufacturer’s sales are plummeting across Europe, and its stock is in freefall. On top of that, its biggest rival, China’s BYD, has just announced a super-fast charger that allows you to “fill up” your EV as quickly as you once could your gas-powered car. All companies go through rough patches, especially when they are leading a new industry. But Tesla is losing its technological edge to China— and that could prove fatal.

If it performs as advertised, BYD’s rapid charging system could revolutionize the EV industry. Its “super-e platform” takes just five minutes to charge a car enough to travel 260 miles and will be rolled out across China later this year. That’s twice as fast as the quickest Tesla charger currently available. Given that range anxiety is one of the main obstacles holding back the EV market, this is a hugely significant development. An EV that can charge that quickly is clearly far superior to one that requires a coffee break while plugged in — especially on long road trips where it will need a recharge along the way.

The evidence is mounting that China’s EVs aren’t just more affordable; they’re also superior in performance. And it’s not just BYD. Smartphone giant Xiaomi announced this week that it’s ramping up production of its sporty EVs, designed to integrate seamlessly with smartphones for a smooth driving and media experience. Meanwhile, upstart EV maker XPeng revealed that its production will increase by 300% this year as it scales up manufacturing.

Given this backdrop, it’s no surprise that Tesla’s stock has taken a beating. Shares are now down 53 percent from their peak following November’s US presidential election and have dropped another 8 percent in the past five days. Even former President Trump’s high-profile endorsement — purchasing a new Tesla with his own money — did nothing to stop the decline. In fact, it may have worsened the situation, given that Tesla’s affluent, eco-conscious customers largely dislike Trump.

However, Tesla’s biggest problem isn’t Elon Musk’s libertarian, right-wing politics. Political controversies come and go. The real issue is that the company is losing its technological lead to Chinese competitors.

Tesla dominated the EV industry because it was the first automaker to produce sleek, fast, and well-designed electric cars with superior battery technology. But that’s increasingly no longer the case. BYD’s five-minute charger symbolizes how Tesla is falling behind — and if this trend continues, its decline could soon become permanent.