Researchers analyze electric car batteries and discover a Chinese motor giant that could dethrone Tesla in the marketplace

The finances of Tesla, the electric vehicle manufacturer owned by Elon Musk, have suffered in recent months as both owners and potential customers grow disillusioned with its leader. Musk has played a key role in reshaping the federal government, laying off thousands of workers, cutting programs, and abruptly canceling contracts with private organizations.

Competition takes advantage of Tesla’s decline

However, Tesla is just one U.S. EV manufacturer, and its competitors are seizing the opportunity as consumer sentiment shifts away from Musk. Edumunds, a car-trade platform, reported that this month, a record number of Tesla owners have traded in their model for another brand.

Tesla won’t have to worry too much about foreign competition, though, as the Biden administration has imposed steep tariffs on Chinese-made EVs, which retail at significantly lower prices than Tesla’s lineup. In 2024, the previous administration implemented 100% tariffs on EVs from China to encourage consumers to choose domestic manufacturers.

Interestingly, Elon Musk, through Tesla, has made major investments in China. As noted in the blog published by PhD student at Auburn University, Linggong Kong, Tesla’s global operations rely heavily on the company’s Tesla Giga Shanghai, a factory located in the Chinese city.

BatteryNews, an online outlet, recently reported on a study comparing the batteries used by Tesla and BYD, a Chinese manufacturer of fully electric and hybrid vehicles, and found that they rely on different technologies.

Meanwhile, CNN reported earlier this week that BYD’s global sales surpassed Tesla’s in 2024. The company sold 4.27 million cars, generating approximately $107 billion in revenue. In contrast, Tesla sold 1.79 million cars, bringing in $97.7 billion. The fact that Tesla’s revenue is within $10 billion of BYD’s, despite selling significantly fewer vehicles, highlights the much higher price tag of Tesla’s lineup.

Let’s dive into the differences ‘under the hood’

“While Tesla relies on 680 cylindrical cells to maximize energy density and performance, BYD is taking a cost-efficient and safety-oriented approach with its prismatic Blade battery,” writes BatteryNews, citing a study from researchers at Fraunhofer IKTS, MEET at the University of Münster, and PEM of RWTH Aachen University, published in Cell Reports Physical Science.

BYD battery offers advantages in heat management and cost

BYD’s battery gives Tesla a run for its money, largely because it is more cost-effective to produce. According to researchers, it is also designed to dissipate heat more efficiently. Unlike Tesla’s batteries, which require cooling systems, BYD models can manage heat more effectively without additional components, BatteryNews noted. Researchers found that Tesla’s batteries generate twice as much heat per volume, necessitating an enhanced cooling system—a process that also consumes energy. As a result, some of the car’s battery power must be used for cooling rather than propulsion. However, Tesla might argue that the additional heat is a worthwhile tradeoff, as it allows the vehicle to travel longer distances.

Get your game on! Whether you’re into NFL touchdowns, NBA buzzer-beaters, world-class soccer goals, or MLB home runs, our app has it all. Dive into live coverage, expert insights, breaking news, exclusive videos, and more – plus, stay updated on the latest in current affairs and entertainment. Download now for all-access coverage, right at your fingertips – anytime, anywhere.