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I think one of the biggest problems in the United States is the misallocation of ambitious people. The highly educated and ambitious people see finance, government, tech, and corporate executive tracks, as the way to convert their energies into social status.

Even startups these days seem to be a case of too many chiefs, not enough Indians.

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When Elon gets excited about displacing his engineers on a whim with H1Bs, why would any highly educated ambitious person want to work for Tesla?
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> (...) why would any highly educated ambitious person want to work for Tesla?

To that dimension I would add ethics as well. It's very hard to justify working for the likes of Tesla when being mindful of the attitude the company and company representatives have with regards to basic issues ranging from workers rights to totalitarianism.

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I mean, that's one way to get Indians!
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Well the problem is US wants to be the world's managers. And all we cared about is writing messenger apps. Totally missed the boat on building things, like houses, boats, and most of all new weird things we don't even have a concept for.
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Watching nearly the entire software-financial complex burn to the ground when the vaunted "moats" dry up is going to be a hell of a sight. All this AI hype is just going to end up commodifying the very thing that the entire industry is built on: management of processes.

Places that understand that physical production cannot be abstracted forever will prevail.

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Agreed, and this is a somewhat recent phenomenon (see wtf happened in 1971)

For example, we have 100+ drone startups in the United States. But our overall drone production capacity (hammers in Civ) hasn't actually increased. We just have 100 companies buying grey market from Vietnam and Indonesia, many of which came from China originally.

The way the system should work is if you want to do a drone startup, you need to build a drone factory. That's what the money is for.

If the startup fails, maybe the market leader buys the factory for cheap. This is how the automobile industry was in the United States - a bunch of those companies went bust, but the factories were often kept online by the winners.

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> Well the problem is US wants to be the world's managers.

I think the problem is more nuanced than that. The US was effectively "the world's managers", in the sense that their economic might, entrepreneur culture, and push for globalization resulted in a corporate structure where the ownership and executive levels were US whereas non-critical business domains reflected the local workforce, whether it was the US or not.

This setup worked great while the US dominated the world's economy and influenced their allies and trading partners to actively engage in globalization.

Now that Trump is pushing for isolationism, of course things change.

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I would push on how well GDP measures "economic might".

If I were to tell you a country over five years grew its GDP 5% in 1900, that would mean houses and roads and factories and mines and a whole range of things were built.

In 2020, 5% real GDP growth could be an increase in the value of various services. In fact, you might not need to change the physical world at all to achieve that growth.

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GDP made sense in 1900, back when it took so much labor to keep us all alive and well that we could think of any economic activity as a proxy for progress towards that goal--a goal we could all agree was good. Our concept of value was mostly aligned with our values, so more = better.

Nowadays we're more in conflict, partly just because we can afford to be without risking immediate starvation. Billions get spent on swaying an election this way, more billions get spent on swaying it that way. Dollars spent in both directions count as GDP even though each one has another dollar on the other side pushing in the opposite direction. And it's not just elections, everywhere we're building moats instead of solving problems. It's a very busy way to not go anywhere.

We need to move from scalars to vectors--progress towards some goal--otherwise we're just patting ourselves on the back for working hard to no effect.

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Services are all basically a proxy for the physical world though. Other than things like art and media that people value for their own sake.
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Google and Facebook?
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The problem is that things like houses and boats became political tokens and/or don't have the same profit scaling as software. Housing is mostly restricted by political opposition that made it very hard or even illegal to build much. Building ships is labor intensive which is expensive here, but AFAIK at least construction of navy ships has become a bargaining ship that gets moved around to support senators rather than being allocated to the most efficient place. In general it also seems like unions in the US are somehow more of a problem than in Europe or at least Germany where I grew up. They seem less powerful here but somehow less reasonable.
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Andrew Yang launched a presidential campaign based on this idea, he wrote a book:

“Smart People Should Build Things”

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I think the bigger problem is we filter for conmen. You can become a billionaire for vaporware and are less likely to if you actually ship something.

There are plenty of smart people who are highly passionate about things other than money. The problem is a large portion aren't at top name universities and doing don't have the connections. Problem is, they spent all their time learning their craft and not how to market their ideas.

I disagree that it's just because those jobs pay well. Look at what people are investing in and how it works. We throw tons of money at obviously bad ideas, obvious cons, and anyone that took a semester at Stanford. There are plenty of Bitcoin billionaires! There's tons who have made riches off the VR hype wave before that.

I agree that we put too much focus on finance and the like but I think more importantly we have a system where you can get ultra wealthy for producing vaporware. It's much easier to build hype than build a product. You still get people who become millionaires & billionaires by shipping things, but we created a system where we reward conmen. Ultimately, the con is easier than the actual job.

There's a lot of that tech can do but let's be honest, our industry has capitalized on the boom and bust cycle and accelerated it. We're not the only ones, but we're a big player and it's easier to hold our own community accountable than get others to change.

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Can you demonstrate that this misallocation is worse in the US than it is in other countries?
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They go where it's feasible to go. As long as regulation hamstrings industries, it'd be idiotic to build there. Ambitious people just want everyone else to get out of their way so they (I) can build stuff - and they'll go where there's less resistance.

Oh, there's a "tax credit" to make it easier? Sounds like more paperwork & friction. No thanks!

That's one reason Tech is such an attactor. Low barrier to entry.

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Because compensation?
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The US automakers lost the plot a long time ago, and have just been sucking out money without innovation or improvement since.

When California and the EPA tried to legislate lower emissions 9 years into the future, the US automakers sued to block saying it was impossible. Japanese automakers were already selling vehicles that met those standards.

When they badly, badly screw up, they just get bailed out with public funds and then go on to pay execs tens of millions of dollars a year and fat bonuses. Guaranteed profits no matter what made them lazy and uncompetitive.

They’re all dying

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> When they badly, badly screw up, they just get bailed out with public funds

When this happens, I think it's only fair that the bailed-out company becomes publicly owned. If I'm forced to invest in a company with my tax dollars, then I damn well better be treated as an investor. Where are my shares? Where are my dividends?

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When the USG bailed out banks via TARP during the 2008 financial crisis, it did so by buying shares in those companies. It later sold those shares for a $30.5 billion profit.
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If GMC had been “publically owned” it would have been gutted for profits (kickbacks) by its bureaucracy and politicians and been long dead by at least a decade. Bureaucrats are not good at running companies and private companies should not be providing public services (prisons, toll roads). I don't know why Americans have become so unpragmatic and either all in on “government doing everything” or “private corps doing everything” when life is never ever that simple.
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GM and Chrysler went bankrupt and were partially bailed out, the CEOs were replaced and the Government took a stake in the companies, which eventually paid off.
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There also is the chicken tax which has been protecting US automakers in the pickup truck space which has lead to then leaning much more into that. Together with absurd CAFE rules that benefit huge cars and more beneficial tax write-off rules for vehicles over 3.5t regulation has lead to US automakers focusing on cars that are absurd by international standards.
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- "BYD did it by"

Also the many systemic, industry-wide factors discussed last week in

https://news.ycombinator.com/item?id=43692677 ("America underestimates the difficulty of bringing manufacturing back (molsonhart.com)" — 1010 comments)

I agree with the gist of that piece; focusing on specific engineering choices (important as they are) is missing the forest for a particularly interesting tree. Any American EV maker is heavily disadvantaged right now, no matter how clever they are.

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BYD's allowed to sell in Europe. They're not crushing the market here. They're not substantially cheaper, or better for what they offer for the price compared to other manufacturers.
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Within only a few months I see more Chinese Electric cars than Tesla (or us cars generally) on swiss streets.

Depending on what you are looking for they are WAY cheaper than comparable cars.

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No way I'd trust them. When you crash them or they have a battery fault, the doors lock you inside before the battery catches fire. Many videos of this happening inside China with one recent event in the West.
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> No way I'd trust them. When you crash them or they have a battery fault, the doors lock you inside before the battery catches fire.

This matches reports from Tesla users. The cybertruck is specially prone to this sort of design problems.

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Only cybertrucks I've heard about catching on fire where the ones purposely set on fire. While I'm sure it happens I doubt it's any higher than any other vehicle on the road
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Why is that a common failure mode in a crash? I can't think of a reason or bug that would lead to the doors locking after a crash.
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I think it's a well intentioned safety feature that was never fully thought through. Locking the doors in a crash can prevent a passenger from being ejected from a vehicle. However, if there is no reliable way to unlock the door once the acceleration forces have subsided, you've created a death trap.
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Most cars lock as you start driving, I assume the issue is they’re not unlocking when crashed.
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Fail-safe designs are more expensive because they require redundancies, fully manual linkages, or just non-centralized control.

The Cybertruck went with daisy chained PoE automotive Ethernet variant. The same cables delivering power to subcomponents handle data. Damage/problems in a single component can not only bring down the network but kill power to all the car's subsystems. It means less wiring in the Cybertruck (and lower production expense) at the cost of durability and fail-safety. Someone looked at TokenRing Ethernet and said "yes that is best".

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Are there not similar videos of Tesla, or other electric cars doing the exact same thing?
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There's a mechanical latch release handle integrated into the doors, but they are very much not meant to be used during normal operation and are designed to be inconspicuous. This seems to cause at least some people to fail to operate them during a fast-paced emergency situation.
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Can you share some of those videos here please?
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That sounds like some kind of tiktok scare lol
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VW is selling more EVs in Europe than BYD.
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VW is not an American car maker. There are way more European cars in Switzerland than either Chinese or US. Obviously. Also more Japanese tho
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EU import taxes designed to make them less cheap than local cars do that.
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China has one of the least free trade regimes in the world, their currency controls alone amount to potentially more than Euro tariffs on cars and that’s just one part of their governmental stacking of the deck for their manufacturers.

I think it’s easy to look at the outputs of their industries and compare them extremely favorably to the outputs elsewhere, especially in EV.

But once you start comparing tariff adjusted pricing it gets much trickier much faster.

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The EU has imposed tariffs and levies on BYD, totaling 27% [1].

[1] https://www.businesstimes.com.sg/companies-markets/chinese-e...

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BYD could slash european prices by quite a bit. They price them competitively to take advantage of the margin. The increase in price compared to their domestic MSRP is pretty wild, 2x in some cases. In a race to the bottom, they will win.
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You're right, but comparing Switzerland to America... You need a car to live in 90% of the USA. That said, talking only about specs or prices is pretty reductionist. If anyone on this forum could forecast car sales based on pre-delivery marketing, you know, become a billionaire investor.
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What went wrong is that the federal government didn't build or legislate a national charging infrastructure to match the scale of the interstate highway system.

They could have strong-armed the states into it with a combination of funding the construction and the way they mandated the 21 drinking age: by threatening to withhold highway funds.

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They definitely tried... $7.5 Billion worth. It's on pause now :-(

https://www.govtech.com/transportation/federal-funding-for-e...

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I don't think they actually tried. They created a fund... and then did nothing to implement the intended result.
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And how many stations did that yield?
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> Yeah, because it was ineffective and the people running it, like most federal bureaucracy - extremely incompetent (to mind bending shocking levels).

I think this sort of statement should be revised. From an outsider's point of view, there is a political current within the US that pushes with a fundamentalist fervor the idea that state institutions cannot do any good or anything right. This becomes a self fulfilling prophecy when they elect candidates that push these ideals, which have a vested interest in sabotaging, derailing, and shutting down projects.

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It’s not just a perspective. Tesla was doing this just fine, building tons of chargers, profitably. The government attempts to stimulate more but at a much higher cost. I have yet to charge anywhere but a Tesla charger. I do think the NACS standard finally being widely adopted would have changed things but came a little too late.
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Exactly this. It's not a left/right thing; I'm really tired of the charged partisan excuses (pun intended). What I'm saying is, where is all the charging infrastructure that my tax payer dollars payed for? Where the hell did the money go? If we can't get refunds for wasted taxpayer money, we need to start reevaluating if some of these programs should even exist.
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Did you read the article? The program was just paused, and most of the money was never spent.

> Approval of funding does not necessarily mean the money has been dispersed. Only about $500 million of the $5 billion allotted for NEVI had been dispersed as of October, said Corey Harper, assistant professor of civil and environmental engineering at Carnegie Mellon University’s College of Engineering, who has conducted research into the NEVI program

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Good. But $500 million is still to much for 7 chargers. Where is the money? Where is it! Really. That's our money that was taken at the threat of gunpoint. Enough of this theft and grift. Shut it down, the entire thing and rebuilt from scratch if need-be.
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Without going through everything with a fine tooth comb I imagine some of the money may have been spent upgrading the electric grid to support the chargers.

Fast chargers as I understand are more taxing to the electric grid and so are not simply able to be placed just anywhere there is electricity. Additionally a source paper in the govtech.com article also emphasizes looking at coverage rather than number of chargers. That is wanting to have chargers spread out such a way that people can complete longer trips.

https://cyberswitching.com/understanding-grid-connections-dc...

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That program should be a textbook case-study in how not to run federal projects.

Here's a true statistic:

https://www.washingtonpost.com/climate-solutions/2024/03/28/... ("Biden’s $7.5 billion investment in EV charging has only produced 7 stations in two years" (2024))

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That's insane. Wild that people defend this because they hate Trump so much (yeah he's a bag-oh-farts, but that's a lot of damn money).
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They didn’t spend most of that money yet.

This is a story about a program not getting off the ground in two years and then being cancelled by the political opposition. Is two years too slow? You could certainly argue that.

But this really isn’t a story about government incompetence wasting billions of dollars on a handful or charging stations. Money was allocated, but it never had the chance to be spent.

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The $500 million that was wasted could have bought the taxpayer 10,000 electric cars. Just ponder on that. Where is the damn money?
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You don’t get 1/10 the chargers for 1/10 the money, thats not how projects work. You need to hire people, make a plan, and execute on the plan, and all of that has upfront costs. The same in government as in business — why do you think startups need investors?

That money was wasted when the project was cancelled, not before.

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Isn't this lack of forward thinking somewhat the general problem now?

From an EU perspective the world as it has existed in the living memory is a world shaped by decisive US-actions. The way EVs have been approached were anything but that. Arguably neither did Germany, because of the way their politicians are entangled with the car manufacturers.

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Germany actively hampered it by promoting diesel as THE greeen fuel.
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Yes, as I hinted at in the last sentence of my comment.
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> They could have strong-armed the states into it with a combination of funding the construction and the way they mandated the 21 drinking age: by threatening to withhold highway funds.

Yea let's give the federal government more power. That's going so well right now.

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> Yea let's give the federal government more power. That's going so well right now.

Investing on a nation-wide infrastructure grid that fundamentally changes the nation's energy independence is hardly a reason to mindlessly parrot state rights cliches.

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The current issue is the president ignoring legal limits of his power and breaking laws right and left. While his party cheers on.

While useful parts of the federal goverment are destroyed, because they dont serve ultra rich.

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In a way, the current administration perfectly demonstrates the value of a strong federal government: a kakistocratic, kleptocratic regime wouldn't dismantle the "administrative state" if it weren't an impediment to their criminality, incompetence, and rapacity.
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NATIONAL-scale projects are exactly what the federal government should do. I specifically referred to the Eisenhower interstate-highway system. Those are the kind of grand undertakings that transformed our country, and which the current administration can't even conceive... let alone articulate or propose.

Read about it: https://en.wikipedia.org/wiki/Interstate_Highway_System

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The Chevy Spark EV is an incredible vehicle and has been my around town go kart for the past 7 years. Cost me $11k (!!) as an off lease purchase.
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I adored my Spark EV til it sadly died (fairly scarily, on a highway access road) one day. Chevy was never able to repair it and ultimately gave me a nice payout after paying for a rental for me for nearly a year.

But if you sold the Spark EV for 20k today with like 120mi of range, it would be perfect and would satisfy all my needs 99% of the time. Even mine (13k all in) was great here in LA with ~60mi of range. I loved how small and easy to park it was without feeling cramped to me at all. If it had CarPlay I'd've said it was the perfect car haha.

It's a shame they haven't rebooted it yet as a pure EV. It's right there in the name!

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>2) all the other US manufacturers treated electric as a premium product, resulting in the overpowered electric Hummer 2 and F-150 pickups with high price tags

They had to in order to build the manufacturing capacity without literally bankrupting themselves. As GM has shown, once they had the expertise and manufacturing capabilities, they could quickly move downmarket. By all accounts GM's entry into the space has been a raging success, moving downmarket with the Equinox being available for as low as $27,500.

They obviously aren't to Tesla level sales numbers yet, but they're growing rapidly and I would not count them out of the fight.

https://insideevs.com/news/746177/general-motors-record-2024...

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> dominate in every country that does not have its own auto industry.

That's because they plan to have a small number of huge factories to keep costs down.

But that means they need cheap ships, and can only sell to places with no car tariffs - which tends to be the countries without an auto industry.

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In terms of BYD dominance, one needs to keep in mind the subsidy that the Chinese government is providing, such that they can sell cars below cost.

https://www.shs-conferences.org/articles/shsconf/pdf/2024/27...

Just 2018 to 2022, BYD received $5.9B. And that doesn't include all the indirect subsidies that went to suppliers like the battery manufacturers.

It's a part of Chinese government strategy of "build it and they will come". Massively subsidize select industries, dominate the market.

Which is why the EU has put high tariff's on the cars.

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That is not that much in terms of subsidy for a critical industry. I tried finding the awards for Tesla but the articles lump in government contracts and report the figure to be in tens of billions. I am sure they have received a comparable amount of funding. BYD has just been able to make better use of it I suppose.
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BYD buses are operating in the US.
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You're probably right about BYD, most people only see price and whether it's reputation is at least "ok". I personally will never buy that big of a purchase from a Chinese company until CCP is no longer in charge.
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They are doing a lot of advertisment and promo in Germany which has a active and kinda stable car Industrie.

Pretty sure they plan to disrupt any market

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> 3) integrating rear wheels, differential, axle, and motor into an "e-axle" unit that's the entire mechanical part of the power train

Obviously an electric vehicle is so much simpler than one with a gasoline engine. We have seen it already with lawn mowers who shrank from huge tractors to nimble robots.

An in particular when you don't start from the Autobahn-eater type of cars.

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> 2) all the other US manufacturers treated electric as a premium product

This is because the LITERALLY CAN'T make money of a non premium product.

And for Tesla is just because Musk is stupid and went ALL-IN on self driving. They literally believe that the market will drop by 80% because of self driving. That's why the only build robotaxi and no model 2. Against the advice of basically everybody in Tesla leadership.

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Exactly how will BYD's 400k vehicals "crush" the US auto industry? They could give them away for free and not even make a dent.
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Do you own a BYD? It’s not that great. Build quality is subpar. Problem with investing in China is that once tech transfer ends, there’s no promise that these companies are capable of continued innovations. It’s basically an ecosystem dependent on outside innovations that they can “transfer” and tweak. That’s the whole “communist” economy in nutshell.
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You missed a big elephant in the room 4) China did a significant subsidies for BYD factories. If USA did similar % wise thing to Tesla then we would’ve have $20k teslas driving.
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China subsidized EVs in the same way that America did (tax credits), and less aggressively so. Unless you mean incentives from Shenzhen and getting taxi companies to early adopt? They also added incentives in getting a car at all in cities like Beijing (EVs started out in a different lottery allocation for plates)?
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It's more like BYD winning the race in China's auto industry. China has over a hundred automakers, most making low-end cars.[1] Some are state-owned, some are province-owned, some are privately owned. BYD is privately owned and doing well.

[1] https://en.wikipedia.org/wiki/List_of_automobile_manufacture...

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Did you mean to say sodium batteries instead of lithium in your "BYD did it" sentence?
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No. Five years ago BYD introduced their "blade battery", which is a lithium iron phosphate battery built up of plate-like "blades" in rectangular casings.[1] Wh/L is about the same as lithium ion, Wh/Kg is not as good, and Wh/$ is better. It will survive the "nail test" and does not not go into thermal runaway.

Today, most of BYD's products use this technology. It's been improved to handle higher charging rates. Seems to work fine. Lithium-ion has better Wh/Kg, and it's still used in some high-end cars, mostly Teslas. BYD's approach has captured the low and medium priced markets.

BYD has announced that they plan first shipments of cars with solid state batteries (higher Wh/Kg) in 2027. Price will be high at first, and they will first appear in BYD's high-end cars. Like these.[3] BYD has the Yangwang U8, a big off-road SUV comparable to the Rivian, and the Yangwang U9, a "hypercar". Just to show that they can make them, probably.

[1] https://www.youtube.com/watch?v=dIt5z4wT9RE

[2] https://electrek.co/2025/02/17/byd-confirms-evs-all-solid-st...

[3] https://www.youtube.com/watch?v=wHWXx1KsvVY

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> Like these.[3] BYD has the Yangwang U8, a big off-road SUV comparable to the Rivian, and the Yangwang U9, a "hypercar".

I really did not expect to open this and have it be presented by Kryten! Fun surprise! :)

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By 4) stealing patents and technology off of American companies
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I was curious about this statement and did a search and could not find anything about it.

It appears that EV technology is new enough that it's Chinese companies that are the ones innovating, especially in battery technology.

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I don't really see how any car company can "fall behind" in EV.

Fundamentally, IMO, EVs are such a simple concept mechanically that any company capable of building a conventional ICE vehicle can build an EV.

It's glib to say that - obviously there's a lot of unsaid complexity (battery back cooling, fitting into the frame, and so on), but the actual drivetrain component is just so simple. That EVs are still expensive is to me a sign that production hasn't ramped up yet. So long as production is limited EVs will remain a luxury product - but I can't imagine that's going to continue for all that much longer with an increasing backlog of used EVs on the market and decreasing battery prices.

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Even if there were no improvements to be had in the vehicle itself, improvements in manufacturing processes determine how expensive the product is and thus how competitively priced the vehicle can be. Falling behind on price means falling behind on market share which means falling behind on efficiencies of scale which often means going out of business or at best becoming a niche producer.

Honda and Toyota weren't able to outcompete US manufacturers in the 1980s by offering higher performance vehicles but by delivering similar quality products at lower prices by making use of superior production techniques like Lean and JIT inventory management.

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Are you serious? EVs have been the biggest disruption in the auto industry. It has created major corporations who made the attempts of traditional manufacturers seem obsolete.

VW Group and Stellantis totally failed to compete with Chinese manufacturers and were driven out of the Chinese EV market almost entirely. Competition is extremely fierce.

>That EVs are still expensive

Look up what they cost in China.

>So long as production is limited EVs will remain a luxury product

Around 50% of new sales in China. Not "luxury" in any meaningful way.

The issue is that EVs do not differentiate themselves by power train. They differentiate themselves by battery and software.

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