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Chinese automaker BYD continues to outpace Tesla, making significant strides in the electric vehicle market. On Monday, the company unveiled a groundbreaking battery system that it asserts can charge an electric vehicle in just five minutes comparable to the time it takes to refuel a conventional gasoline-powered car.
Achieving such rapid charging has long been an ambition within the industry, which has struggled with charging limitations that have deterred potential EV buyers.
According to the company, this innovation can deliver 249 miles of range in just five minutes in its new Han L sedan. In comparison, Tesla’s fastest charging capability provides a range of 170 miles in 15 minutes using its high-voltage superchargers.
Years ago, Elon Musk placed a major bet on Tesla’s in-house battery production to extend vehicle range and enhance efficiency. However, battery development has proven more complex than anticipated, and the company’s 4860 battery has yet to meet expectations.
Following this announcement, BYD’s stock surged, bringing its market value to approximately $158 billion. The company’s shares have risen about 58% so far this year, reflecting investor confidence in its rapid advancements.
Concerns Over Fast Charging Technology
Some industry analysts have voiced concerns that ultra-fast charging, like BYD’s, could potentially reduce the lifespan of EV batteries. However, current evidence does not strongly support this notion.
In a past interview with Reuters, the CEO of leading Chinese battery manufacturer CATL took a jab at Musk, claiming that he “doesn’t know how to make a battery.”
BYD, now China’s top EV manufacturer, initially started as a battery production company in 1995 before pivoting to the automotive sector. The company foresaw a future where cars would function as computers on wheels. In addition to EV production, BYD assembles iPads for Apple. Its vehicle lineup spans a wide range of price points, with its most affordable model, the Seagull, starting at just $9,700.
The company has been aggressively expanding into international markets, including Europe and South America, bolstering China’s global influence by creating jobs abroad and demonstrating success beyond its domestic market.
The U.S. EV Market Faces Challenges
This progress comes at a time when Musk is pushing for the removal of U.S. government subsidies that have supported the transition to EVs. Critics argue that China’s subsidies give its automakers an unfair advantage in global markets by enabling them to offer lower-priced products.
However, BYD has reached profitability in its EV segment, and American automakers could potentially achieve the same if given more time to scale production. Once a global leader in automotive innovation, the United States has increasingly shifted its focus toward artificial intelligence and cryptocurrency, seemingly relinquishing its dominance in the car industry to China.
The shift to electric vehicles has encountered more challenges than many in the industry initially anticipated. Charging infrastructure has been slow to develop, with many existing chargers either malfunctioning or operating at a sluggish pace.
The well-established gasoline infrastructure took decades to refine, and it stands to reason that EV charging networks will require a similar period to mature. The emergence of ultra-fast charging technology could alleviate range anxiety among drivers who are reluctant to spend extended periods at charging stations.
Beyond surpassing Tesla in affordability and battery efficiency, BYD recently announced plans to integrate advanced self-driving technology into all of its vehicles. Early reviews have praised BYD’s system for its superior performance.
Tesla’s Declining Market Position
These developments further highlight the growing disconnect between Tesla’s valuation and its actual market performance. The company has been facing declining global sales, trailing behind BMW in overall vehicle sales while operating at lower profit margins. Tesla’s model lineup has grown outdated, and its full self-driving capabilities remain significantly delayed. To sustain its stock valuation,
Musk has shifted focus toward self-driving robocabs and robotics. However, Tesla’s stock has plummeted by 40% since the beginning of 2025, in part due to the backlash surrounding Musk’s deep involvement with the Trump administration.
If Musk were not so preoccupied with political maneuvering in Washington, he might have been able to devote more attention to Tesla—a company that once dominated the EV sector but now finds itself overshadowed by BYD.
His proximity to President Trump appears to hold greater significance for him at present. It is sobering to consider how much further Tesla might have progressed had it been helmed by a dedicated CEO, free from distractions that have arguably tainted the brand.
