"BYD, the world's largest EV maker, has begun expanding into Brazil, the world's seventh-largest nation by population at 213 million people. That is just less than two-thirds of what America's is. The BYD move is part of its effort to increase sales outside China, its home market. It also seeks to capitalize on Tesla's ( NASDAQ: TSLA) weak sales and the fact that CEO Elon Musk no longer considers Tesla primarily an EV company. Tesla sales have fallen sharply in the US and particularly in Europe."
"While BYD faces a 100% tariff in the US, the company has begun to gain a foothold in Europe. BYD's EU registrations rose 268% last year. Tesla's were down 26%. BYD has two factories in Europe and may add another in Spain. It does not hurt that BYD is employing people in the region. BYD will enter Canada this year. It sells cars in Mexico and may also establish a plant there."
"BYD has another immediate reason to push into other countries. Sales in its home market, China, have faltered. According to CNBC, "Chinese electric car giant reported a nearly two-year low in local sales in January, signaling mounting challenges for the world's largest auto market." There are many EV companies in China. Fierce competition has fragmented market share and driven prices down."
BYD is accelerating international expansion into Brazil, Europe, Canada and Latin America to grow sales outside China. European registrations surged while Tesla registrations declined, and BYD already operates two European factories with a possible third in Spain. BYD confronts a 100% tariff in the US, blocking immediate entry, while North American market access remains politically sensitive due to concerns about impacts on Ford and GM. Domestic Chinese EV sales have weakened, with local sales falling to a near two-year low and intense competition fragmenting market share and pushing down prices. BYD is pursuing global footholds to diversify revenue and production risk.
Read at 24/7 Wall St.
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