BYD's transformation from battery manufacturer to electric vehicle powerhouse, surpassing Tesla.

While Tesla leads the electric vehicle revolution in the U.S., it faces stiff competition abroad, particularly in China, where domestic automakers are gaining ground with better cars at lower prices, including those backed by Warren Buffet.

In the fourth quarter of 2023, BYD surpassed Tesla as the world's leading EV manufacturer, with more sales of battery-powered vehicles than its U.S. competitor.

"Evelyn Cheng, CNBC's Beijing correspondent, stated that BYD has become a dominant force in the new energy vehicle industry, consistently ranking at the top in monthly rankings."

BYD, founded by Wang Chuanfu, initially focused on producing batteries for mobile phones in the 1990s. The company later shifted its focus to automobiles and is now the leading car brand in China and a significant manufacturer of EV batteries.

"According to Sam Abuelsamid, principal analyst at Guidehouse Insights, the company is among the top worldwide in producing lithium-iron phosphate batteries. He explained their benefits, including their longevity and lower manufacturing costs, which are approximately 30-40% less per kilowatt hour compared to lithium-ion batteries."

BYD's affordability is a significant factor in its popularity, as many of its cars are priced lower than competitors, with several models starting at under $20,000.

"Michael Dunne, CEO of Dunne Insights, stated to CNBC that the Seagull was launched in Munich just a few months ago, priced at $11,500. He explained that to get an entry-level vehicle in the United States and Europe, one would have to double that price and more, making the segment of $35,000 and under highly competitive."

BYD is expanding globally and exporting over 240,000 cars across 70 countries. The company has announced plans for a European factory in Hungary and is reportedly looking for sites in Mexico.

"Dunne stated that they are definitely preparing for the U.S. market, waiting for the right timing. The U.S. and Europe offer a profitable market for them, and they must enter, compete, and win in this region to succeed globally."

Learn how BYD evolved from a battery manufacturer to an EV titan and what the future holds for the company by watching the video.