Local Chinese media reported that Tesla is pushing to acquire a stake in BYD, China, which is the third largest electric vehicle market in China and fourth largest battery market in the world.
On the 1st, Chinese online media, OFWeek, and others reported that "Tesla is discussing a plan to buy a 20% stake in BYD for $36 billion (about 40 trillion won)." It is reported that Tesla is considering buying 10% of its stake in cash and exchanging the remaining 10% for Tesla stock.
BYD ranked third in the Chinese electric vehicle market last year, following Shanghai GM Wuling (165,609 units) and Tesla (138,069 units). In addition, the world's battery supply is ranked No. 4, making it the most competitive Chinese electric vehicle maker that can make both batteries and finished cars. In 2008, Warren Buffett invested a 9.9% stake. Tesla's attempt to secure a stake in BYD seems to be a strategy to quickly dominate the electric vehicle market in China and secure battery supply stability. From the standpoint of BYD, Tesla can help in autonomous vehicles and luxury electric vehicles.