Electric Vehicles

BYD is special in that they make nearly all the components of their cars. I wouldn't be surprised if they owned and operated the mines that obtain the metal necessary to build them because they're that integrated.

Contrast that with how western car companies do it, where they outsource most of the vehicle parts manufacturing to 3rd parties. When Ford or GM needs a new side mirror for a new vehicle they just designed, they'll send the spec to some company that just makes mirrors (like that) and put in an order.

When BYD needs a new part like that they just make it them damned selves. In fact, they'll setup an enormous production line for each stupid little thing.

BYD can get away with this because China's market is so big and a lot of the things they need for making electric vehicles are subsidized by the Chinese government (aka the people paying taxes).

This is why a BYD compact electric SUV is $12,000 (in China) and an equivalent vehicle in the US is $40,000 (or more, I shit you not!). That $12,000 SUV with 300 miles of range really is equivalent to a $40,000 vehicle in the US!

It's one of the benefits of having your government pick and choose winners and subsidizing TF out of those winners. There's also things other than subsidies at work that give BYD a huge (price) advantage but they're more complicated than I'm willing to write out at the moment.

What's the downside to doing things the China/BYD way? The inability to pivot. In theory, the EV market could undergo a massive change so that demand drops like a rock. Then they're stuck will zillions of cars no one wants. This already happened.

BYD also has teeny tiny margins which leaves them vulnerable to market crashes (like that). Fortunately for them, the government will bail them out and give them loans that are basically free money. Just like how the US government bailed out GM.