Waiting around for an electric vehicle (EV) to charge can be irritating. But that irritation might have just been greatly reduced by Chinese EV and hybrid maker BYD (OTC: BYDDY). Earlier this month, it revealed its Blade Battery 2.0 and Flash Charging system. Used together, the company claims, they can bring a compatible vehicle from a 10% charge to 70% in roughly five minutes and from 20% to 97% in approximately 12.
This would suggest BYD has a game-changing EV product on its hands. Is it reasonable for Tesla (NASDAQ: TSLA) investors to be worried, and maybe even consider selling their stock?
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
First, a note. Tesla and BYD are not direct competitors in the U.S., where the former is prominent and the latter is effectively unavailable. That’s mainly because our government has slapped a 100% tariff on EVs built in the Asian country.
The two are actually collaborators in some respects. Like BYD, Tesla is working hard to develop its in-house battery unit, but its strategy differs substantially from its vertically integrated Chinese peer. The American auto maker manufactures some batteries in-house, supplementing them with products from outside manufacturers — including BYD. All of BYD’s cars, meanwhile, use BYD batteries.
Tesla’s latest battery cell, the 4680, is extremely reliable and has a relatively long range when charged. Its charging time is slower than that of Blade Battery 2.0. However, in contrast to the 12 minutes it takes for BYD’s power pack to charge from 10% to 97%, Tesla batteries need 20 to 25 minutes.
Will most EV owners prefer a battery that offers plenty of range, even if it means longer charging times? Or will they favor a lower-range product that charges more quickly and gets them on the road before they finish their takeout coffee?
I’d imagine the average consumer would go for No. 2. Americans, in particular, don’t like to wait.
I think, then, Blade Battery 2.0 could be a meaningful threat to Tesla’s battery-making efforts. But that’s the catch; since Tesla is open to components from outside manufacturers, if a competing battery technology proves too competitively powerful, the company could try to adopt it (albeit at the expense of its vaunted Supercharger network). Tesla doesn’t sell its batteries to others, so it doesn’t have business to lose with such goods.
