Chinese automaker BYD is continuing its lead over Tesla with the introduction of a new battery system, unveiled on Monday, which reportedly can charge an electric vehicle in just five minutes. This speed is comparable to the time it takes to refuel a traditional car. The automotive industry has long pursued this goal, aiming to resolve challenges related to charging that have deterred potential buyers.
BYD claims that its new Han L sedan can achieve 249 miles of range within a five-minute charge. This is in contrast to Tesla’s highest charging rate, which provides 170 miles of range in 15 minutes using its high-voltage Superchargers. Despite Elon Musk’s significant investment in developing in-house batteries designed for extended range and improved performance, Tesla’s 4860 battery has not met expectations.
Following this announcement, BYD’s stock value increased, reaching a market valuation of approximately $158 billion. The stock has risen about 58% this year.
Although concern exists that fast charging, such as that offered by BYD, could reduce the lifespan of an EV battery, there is currently little evidence to substantiate this claim. Last year, the CEO of major Chinese battery manufacturer CATL commented in an interview with Reuters that Musk “doesn’t know how to make a battery.”
BYD, established in 1995 as a battery manufacturing company, transitioned into the automotive market upon recognizing the future of cars as technological vehicles. The company also assembles iPads for Apple. Offering a range of electric vehicles at various price points, BYD’s most affordable car, the Seagull, starts at just $9,700. BYD is expanding its reach internationally, entering markets in Europe and South America, thereby enhancing China’s soft power by creating local jobs and demonstrating success outside its domestic market.
Meanwhile, Elon Musk is reportedly focused on removing subsidies that aid U.S. automotive companies during the industry’s transition, which has drawn criticism over China’s use of subsidies for market dominance. Unlike many competitors, BYD has achieved profitability with its EVs, a position U.S. automakers could attain if given more time to scale production. As America shifts focus to AI and cryptocurrency, it appears to have relinquished its former global automotive leadership to China.
The transition to electric vehicles has encountered more challenges than anticipated, particularly due to the slow expansion of charging infrastructure and issues with existing chargers. The development of fast-charging capabilities is expected to alleviate driver concerns about lengthy charging times, akin to the decades it took to establish the current infrastructure for gas-powered vehicles.
Beyond outperforming Tesla in terms of price and battery capabilities, BYD has recently announced plans to integrate advanced self-driving features into all its vehicles, a system that has been praised by reviewers for its performance.
While Tesla’s current valuation may seem questionable given global sales declines, its underperforming vehicle lineup, and delays in achieving full autonomy, Musk has shifted focus towards robotics and self-driving robocabs to support the company’s valuation. Tesla’s stock has decreased by 40% since the start of 2025, partly due to backlash against Musk’s political involvement.
Some speculate that less focus on Washington might benefit Tesla, once a leader in the electric vehicle market but now seemingly overshadowed by BYD. For now, Musk values political power and proximity to President Trump, facing criticism over potentially hindering Tesla’s progress due to divided priorities.
