BYD Vs Tesla: Who will win the Global EV Race?

BYD Vs Tesla: Who will win the Global EV Race?
Case Code: BSTR681
Case Length: 15 Pages
Period: 2019-Q1 2024
Pub Date: 2024
Teaching Note: Available
 Price: Rs.400
Organization : Tesla Inc.
Industry : Automotive
Countries : -
Themes: Competitor Analysis, Competitive Strategy, Brand Strategy
BYD Vs Tesla: Who will win the Global EV Race?
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

The case is about the battle for supremacy between two Electric Vehicle (EV) giants – US-based Tesla Inc. (Tesla) and the Chinese automaker BYD Company Limited (BYD) – that provide sustainable transportation to people globally. While Tesla continues to be a leading player in the EV market, BYD has been rapidly gaining ground and it surpassed Tesla in Q4 2023 to become the world’s largest seller of Battery Electric Vehicles (BEVs), shipping more than a half a million cars in the quarter and meeting its target of 3 million+ cars annually. However, Tesla reclaimed the crown in Q1 2024.

The case describes the competitive advantages of both the automakers. BYD’s broader range of EVs, battery technology, vertical integration, affordable pricing, and expanding global presence are key factors that led to its ascendance in the global EV space. On the other hand, Tesla had distinguished itself from rivals with its sleek EV models, cutting edge technology electric-only strategy, vast super charging network, and continuous innovation.

However, as the competition in the crowded global EV market heated up, both BYD and Tesla faced some common challenges such as a weak market demand for EVs, quality control issues, regulatory compliances, and the generation of profits. Going forward, the competition between these two giants will likely intensify. While BYD is well-positioned to challenge Tesla’s leadership in the EV market, Tesla also has the latent possibility to remain the EV champion. The case concludes with the question: Who will win the global EV race?

Issues

The case is structured to achieve the following teaching objectives:

  • Analyze the global EV market using Porter’s Five Forces Framework
  • Compare and contrast the growth strategies of two EV giants
  • Identify BYD’s and Tesla’s competitive advantages applying Bowman’s Strategy Clock Model
  • Examine the challenges facing EV makers in the highly competitive global EV space
  • Chalk out a future growth strategy for BYD and Tesla

Contents

Keywords

Competitive Advantage; Competitor Analysis; Challenger; Competitive Strategy; Differentiation; Competitive Environment; Global Electric Vehicle (EV) market; Hybrid Strategy; Tesla; BYD

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