Post

Thiemo Fetzer 🇪🇺🇺🇦 - same handle elsewhere

A statistic that I keep reiterating is the following: BYD in China has a 50% cost advantage making EVs relative to Tesla in China. Context: https://x.com/i/status/2108494559621582977

x.comShanu Mathew (@ShanuMathew93) on XWhy are Euro auto brands losing to China? Well... let's look at costs, productivity, employee output, etc. Hard to compete with this. "Using VW’s auto plants as a proxy, labor costs, labor productivi...

10/10/26, 11:06 am0 reposts4 likes

David H Feldman

@dhfeldman.bsky.social

How much of this is driven by explicit or implicit public subsidies?

Thiemo Fetzer 🇪🇺🇺🇦 - same handle elsewhere

@trfetzer.com

This is an intra-China comparison. A big part of it has to do with economies of scale, spatial concentration, and the advantage of very modern infrastructure with optimized supply chains. At the heart lie cheap access to land, planning certainty and low land rents...

David H Feldman

@dhfeldman.bsky.social

If cheap access to land and planning certainty apply to the Chinese firm, but not to Tesla that is an implicit subsidy, right? Is Tesla subject to regulations and taxes that the Chinese firm does not face? Scale economies is a clear advantage, of course.

Thiemo Fetzer 🇪🇺🇺🇦 - same handle elsewhere

@trfetzer.com

The cost advantage primarily stems from the integrated value chain… meaning: batteries can be sourced more cheaply intra house relative to non integrated firms who need to source from open market. I suspect what you will say next….

Thiemo Fetzer 🇪🇺🇺🇦 - same handle elsewhere

@trfetzer.com

It’s key to redirect CN supply capacity in the direction where in particular dynamically the biggest counterfactual emissions reductions can be achieved

Petrus Crinitus

@petruscrinitus.bsky.social

I don't do Twitter.

Thiemo Fetzer 🇪🇺🇺🇦 - same handle elsewhere

@trfetzer.com

Most understandable.