Mercedes thought themselves to be untouchable due to it being a premium brand with high margins by putting a star on commodity parts, like they're a Swiss watch.
Same impact as in fashion. Louis Vuitton can try and persuade us that they remain the choice of the world's wealthiest explorers, but when every two bit junior associate realtor is sporting an LV purse, I am not so sure.
Both brands fell for the growth at all costs mantra.
China never managed to catch up to other countries in terms of making combustion engines (it is incredibly hard, and from what I grok they were a generation or two behind), but EVs are mechanically much simpler.
What's more, BYD is following Tesla's playbook of vertical integration and making components inhouse to save money vs outsourcing everything.
But honestly whoever gets 2x the density at the same cost will win, and it may be that incumbent advantages don't end up meaning much. AFAIK China's advantage isn't in much cheaper batteries, it is in cost savings everywhere else in making EVs.
For example, VW released a $60k USD EV minivan with mediocre range, and they thought that was a good idea. That sort of acceptance of mediocrity is why traditional automakers are going to get hammered into the ground, except instead of Japanese automakers teaching the lesson, this time it will be Chinese automakers. (Irony: At one point it was VW who helped teach American automakers the same lesson....)
Revolutions like that don't happen on a given Tuesday. They ramp up over a decade or more. Would you notice that?
Would you notice if a faraway country passed a tipping point? https://www.reuters.com/business/autos-transportation/chinas...
Would you notice if a US state's electricity grid was transforming? https://www.nytimes.com/interactive/2024/05/07/climate/batte...