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    Half Tones

    As Tesla’s China Woes Continue, Rival BYD Reports 632% Growth

    Apr 30, 2019

    Shenzhen-headquartered electric-car maker BYD announced a 750 million-yuan ($111 million) gain in net profits in the first quarter of 2019, a year-on-year increase of 632 percent, according to the company’s Q1 financial report published Sunday.

    “In the second quarter in 2019, it is expected that ... the sales volume and revenue of the new energy vehicles will continue to maintain strong growth,” BYD wrote for its Q2 forecast.

    One reason for optimism not mentioned in the report is Tesla’s ongoing struggles in China. In March, price cuts to several Tesla models angered Chinese customers who had already purchased full-price vehicles. Last week, the faulty battery of a Model S sedan caused the vehicle to explode in a Shanghai parking garage, sparking safety concerns online. And on Friday, Chinese ride-hailing company Shenma Zhuanche blamed its allegedly defective Teslas for costing the company nearly $1 million in losses.

    China is the world’s largest market for electric vehicles. In February, Bloomberg reported that BYD has benefited immensely from government subsidies, with analysts estimating that the company received new-energy subsidies equal to 380 percent of its electric car sales in 2018. (Image: IC)