Market Trends:

·      The electric vehicle (EV) market is expected to grow rapidly, with EVs projected to account for over 30% of all vehicle sales globally by 2030 (Ren, 2023). This presents huge growth opportunities for EV makers like Tesla and BYD.

·      China is projected to become the largest EV market by 2025, accounting for over 40% of global EV sales (Tatevosian, 2023). As a China-based company, BYD is well-positioned to capitalize on this massive local market.

·      BYD has a competitive advantage in battery technology, through its proprietary blade battery design with higher energy density and improved safety. This provides cost and performance advantages.

·      Tesla still leads in brand value and technology innovation, but faces competition from BYD, Volkswagen, and other major automakers investing heavily in EVs (Furrier, 2020).

 Strategic Analysis:

·      BYD is pursuing an aggressive global expansion strategy, targeting Europe as a priority market supported by its cost advantages (Ren, 2023). This will boost BYD's market share.

·      BYD has vertically integrated capabilities across the EV value chain, including proprietary battery tech (Farooque, 2022). This provides greater control and potential efficiency.

·      Tesla still leads in software, self-driving tech, and direct sales model. But its lead is narrowing as competition rises (Li, 2023).

BYD is well-positioned to capitalize on China's massive and rapidly growing EV market, and enjoys competitive advantages in battery technology and cost structure. However, Tesla maintains strengths in brand, innovation, software and manufacturing experience. If BYD can successfully expand globally while Tesla faces increased competition, BYD could surpass Tesla in global EV sales by 2030