<p><img src="https://hawk-oss.hawkinsight.com//picture//202404/2211467101_795.jpg" style="width: 100%;">According to Late Finance, BYD's average net profit per vehicle is 9,000 yuan, or about $1,250.。Tesla, on the other hand, based on net profit of $14.9 billion and sales of 1.81 million vehicles in 2023, earned more than $8,250 per vehicle.。This clearly shows that BYD is after market share rather than profit。- - This strategy is very common in Chinese companies, and there is a widespread bottom-to-bottom competition and winner-take-all mentality.。Good examples are bike sharing programs, food delivery and, to a lesser extent, ride-hailing programs.。All of these initially have multiple entrants, and then they do deep discounts and promotions to gain market share。The advent of bike sharing has largely narrowed the competition to two companies, ofo and mobike.。But as a result, they have created an unprofitable business model due to relentless competition, and although a few bike-sharing companies still exist, both companies no longer exist.。We have seen a similar situation in the Chinese car market, where brands have been heavily discounted since last year.。According to JustAuto, China has long had too many producers and too many brands, with an average factory utilization rate of 59%。The usual healthy range is 70-80%.。With NEVs, it's fast becoming BYD and then everyone else。BYD sold 2,706,075 vehicles in China last year, the second highest was Tesla with 603,664 sold.。When you fall to 10th place, zero-run car sales are only 144,155。BYD is setting the agenda thanks to its ability to sell large numbers of cars at low prices。Despite lower profit levels in 2023, BYD's profit levels have actually improved over previous years。BYD's cash reserves have increased eightfold since the end of 2019。Net profit per vehicle is actually negative until 2021。Although last year's profit per vehicle was relatively low, it was still significantly higher than the 2022 profit of 5,600 yuan ($750) per vehicle。Fast Tech asks whether car companies want market share or bicycle profits？BYD leads in pricing with economies of scale and vertical integration。For many other companies, especially those in the new energy vehicle market and the market as a whole, due to low sales, what Fast Technology said about the profit of a single car may actually be a car。Since the beginning of this year, BYD has made a new wave of price wars, shifting from new energy vehicles with the same price as ICE models to new energy vehicle strategies that are cheaper than ICE models。March sales were BYD's second highest in a single month, with a record in December 2023, with monthly sales again breaking the 300,000 mark。Source: Fast Tech</p>