Tesla has also been developing its own advanced driver assist system (ADAS) and recently launched it in China on the Model 3.
BYD also launched its own ADAS system earlier this year and now Musk is acknowledging that the Chinese company is taking the competition seriously.
The two companies are now both emerging as EV powerhouses. BYD is able to produce more EVs at a faster rate and Tesla is known for its advanced technology. As their relationship has improved, it could be beneficial for both companies.
It could be beneficial for Tesla to source some components from BYD to reduce cost and to increase production. BYD could also benefit from having access to Tesla’s technology and getting a better understanding of the EV market.
It’s exciting to see these two companies going from competitors to partners in a relatively short amount of time. It could be the beginning of an even more interesting relationship between Tesla and BYD in the future.