[Text/Observer Network Zhou Shengming Editor Gao Shen] The Financial Times reported on April 15 that under Trump's tariff policy, BYD's "absence" in the US market has become an important asset.
The Financial Times said that Trump's latest round of tariff measures seem to protect Tesla and provide a competitive "barrier", but in fact, Trump's approach not only fails to curb competition, but may give BYD a key advantage to surpass Tesla.
Tesla CEO Elon Musk is busy with American political struggles. On the other side of the earth, BYD is leading in global sales - in the first quarter of this year, BYD's pure electric vehicle sales exceeded 416,000 units, surpassing Tesla's 336,700 units. This is also BYD's second consecutive quarter of surpassing Tesla in pure electric vehicle sales.
The Financial Times said that for many years, skeptics have viewed BYD's rise as accidental for various reasons.
These skeptics once thought that BYD was just a low-cost brand in China, unable to pose a long-term threat to global giants. When BYD first surpassed Tesla in 2023, some argued that it was due to plug-in hybrid models boosting overall sales; when its growth exceeded the global electric vehicle market rate, it was attributed to the "home court advantage" in the Chinese market.
In the process of going overseas, these skeptics also believed that BYD's "absence" from the US market was a disadvantage. However, The Financial Times believes that this "absence" has now become a strategic asset for BYD.
"Because BYD does not sell passenger electric vehicles in the U.S., it is immune to the turmoil brought about by Trump's latest tariff policy. It has no factories, dealers, or market share to defend in the U.S., so it does not need to face regulatory uncertainty, retaliatory tariffs, or political storms related to the U.S. market." The Financial Times commented that this geopolitical "isolation" has become an extremely rare advantage in an industry with frequent changes in political winds.
It is reported that over the years, the pressure of being kept out of the U.S. market has forced BYD to focus on other major markets, which has allowed BYD to gain an edge in regions with fewer political barriers, such as Europe, Latin America, and Southeast Asia. Data shows that BYD's exports exceeded 417,000 units in 2024, and this number is expected to double this year.
In contrast, Tesla faces multiple risks.
As an iconic American brand, it stands at the forefront of potential countermeasures from China. Although its Gigafactory in Shanghai provides local production capacity, Tesla's high dependence on the Chinese market (its second largest market) also means significant risks.
The Financial Times believes that under Sino-US trade disputes, Tesla's sales in China have already started to decline. In March, Tesla's sales in China fell by 11.5%, while BYD's sales grew by 23.1% year-on-year in March.
The European market, once a safe haven for Tesla, is also shifting. The Financial Times believes that if the EU adopts retaliatory measures against US-made cars and parts in response to US protectionist policies, Tesla will be the first to be affected. Currently, many of Tesla's premium models are still produced in the U.S. For example, about 60% of the parts for the Model X are made in the U.S.
In the first quarter of 2025, Tesla's sales in Europe dropped significantly, with declines exceeding 40% in countries like France and Sweden. Meanwhile, BYD's sales in the region continued to grow steadily, with deliveries in the UK increasing more than sevenfold.
This shift in sales is also reflected to some extent in financial data. It is reported that Tesla's automotive gross margin dropped to 13.6% in the fourth quarter last year, less than half of its peak in 2022. BYD's gross margin during the same period was 22.3%.
"Although Tesla remains the most recognizable electric vehicle brand globally, BYD has taken the lead in core business indicators such as sales, profitability, and growth. What is even more troubling for Tesla is that BYD is gaining increasing recognition on the global stage." The Financial Times stated.
The Financial Times believes that this recognition, to some extent, reflects the differences in the management styles of the two companies' leaders.
"Musk is a regular feature in media headlines, while BYD founder Wang Chuanfu is a low-profile chemist-turned-engineer. In an era where 'exposure equals scrutiny', his restraint has become an advantage for BYD." The Financial Times commented.
As extreme tariffs become a core pillar of US economic strategy, a clear trend is emerging: US companies are increasingly mired in regulatory complexity and strategic backlash, while foreign competitors are crossing through the "gaps" created by these strategies and continuing to advance.
The Financial Times said that Trump's tariffs were intended to protect US influence, but now it seems that the US may inadvertently be teaching other countries how to move forward independently without American leadership in the process of trying to bring the world into its own economic logic.
This article is an exclusive contribution from Observer Network and cannot be reprinted without permission.
Original source: https://www.toutiao.com/article/7493838153984295487/
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