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BYD<\/a>, the Chinese carmaker that recently overtook Elon Musk\u2019s Tesla<\/a> in global sales of electric vehicles, has struck fear<\/a> into legacy automakers. That\u2019s primarily because of its low production costs and inexpensive vehicles, which has the likes of Ford<\/a> and Stellantis<\/a> scrambling to become more competitive on price.<\/p>\n But BYD, backed by Warren Buffett\u2019s Berkshire Hathaway<\/a>, is more versatile than many might realize. The carmaker produces not only ultra-affordable vehicles, but also models all along the price spectrum.\u00a0<\/p>\n That includes luxury models, such as those under its Yangwang brand. This weekend, BYD officially launched<\/a> the Yangwang U9, a high-end electric sports car designed to rival Ferrari<\/a> and Lamborghini.\u00a0<\/p>\n The vehicle\u2014priced at 1.68 million yuan ($233,450)\u2014can reach 100 km\/h (62 mph) in 2.36 seconds and reach a top speed of 309.19 km\/h, the company said. It can also spin in place and enter dance mode, as videos posted on social media showed.<\/p>\n BYD officially launched its pure electric flagship sports car, the YANGWANG U9, today. <\/p>\n Its air suspension system offers a wide range of dance modes, while the adoption of four electric motors allows it to spin in place. pic.twitter.com\/IHhhTKDCSW<\/a><\/p>\n \u2014 Yan Chang (@cyfoxcat) February 25, 2024<\/a><\/p><\/blockquote>\n The car will be available only in China for now, though traders taking advantage of a loophole<\/a> have been selling luxury Chinese EVs to overseas customers who often viewed as status symbols\u2014even in markets where they\u2019re not yet officially available.<\/p>\n On the other end of the spectrum, BYD unveiled<\/a> this week a lower-priced version of its popular Dolphin hatchback. In 2023, BYD sold 367,419 Dolphin models, up 79% from the previous year. The new version\u2019s starting price is $13,865.<\/p>\n Of course, BYD needs to do more than produce a wide range of vehicle types to survive. It faces price wars, a saturated market, and slower EV growth<\/a> within China. And as it expands internationally the host of challenges includes trade barriers, regulatory hurdles, and customers\u2019 loyalty to legacy automakers.<\/p>\n It\u2019s working to establish manufacturing in places Hungary, Thailand, and possibly Mexico\u2014which could serve as back door to the U.S. thanks to a free-trade agreement, much to the alarm of trade groups<\/a> and lawmakers\u2014it might encounter labor and supply-chain challenges that are not an issue in China.<\/p>\n But Musk, who laughed at<\/a> BYD\u2019s cars in 2011, admitted last year that \u201ctheir cars are highly competitive these days.\u201d And last month, he said<\/a> of Chinese carmakers in general, \u201cIf there are no trade barriers established, they will pretty much demolish most other car companies in the world.\u201d\u00a0<\/p>\n The late Charlie Munger\u2014Buffett\u2019s right-hand man\u2014led the decision for Berkshire to invest in BYD. He then watched the value of Berkshire\u2019s 2008 investment in the carmaker surge<\/a> from $230 million to $9.5 billion 14 years later.<\/p>\n Munger attributed much of BYD\u2019s success to founder and CEO Wang Chuanfu, whom he described as a \u201ccombination of Thomas Edison and Jack Welch,\u201d marveling that he could \u201clook at somebody\u2019s part in the morning\u2026and in the afternoon he could make it.\u201d<\/p>\n \u201cHe is a natural engineer and a get-it-done-type production executive,\u201d Munger added, \u201cand that\u2019s a big talent to have in one place.\u201d\u00a0<\/p>\n<\/div>\n\n\n
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