As always, “here’s how” can be excised from a hed without any negative side effects.

In mid-2022, when BYD executive Lian Yubo was asked to compare Chinese manufacturing with Tesla’s technology, he remarked that Elon Musk was an example that all Chinese carmakers could learn from.

“Tesla is a very successful company no matter what. BYD respects Tesla and we admire Tesla,” he said in an interview on Chinese state media.

Yet just three years later, Tesla’s technological lead over its Chinese rivals has narrowed dramatically. It is fighting to stay ahead in the world’s largest car market, its sales are falling in many other countries and its efforts to develop fully self-driving vehicles are running into regulatory roadblocks.

Having once scoffed at the idea that BYD could ever be a competitor to Tesla, Musk returned from a visit to China last year with a sombre assessment for his senior management. “He had seen the BYD factories, the cost and their tech,” says one former Tesla executive, adding that Musk believed China was winning the electric vehicle race.

As Tesla’s sales decline following Musk’s forays into US politics and amid a lack of new models, BYD has overtaken it to become the world’s largest manufacturer of EVs. Its annual revenues surpassed $100 billion for the first time in 2024.