Business Model Comparison between Tesla and BYD: From Supply Chain Integration to Core Technology Competition

Xinran Li ()
Additional contact information
Xinran Li: Victoria Hill School

A chapter in Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025), 2025, pp 642-650 from Springer

Abstract: Abstract The electric vehicle industry has grown rapidly in recent years, becoming a major area of innovation and investment. Within this sector, Tesla and BYD have emerged as two leading companies, each adopting different business models. This paper compares their strategies in two main areas: supply chain integration and core technology development. Using financial reports, industry data, and business model analysis tools, the study examines how each company manages costs, promotes innovation, and positions itself in the market. Tesla focuses on software innovation and premium branding, achieving higher profit margins through features like autonomous driving. In contrast, BYD relies on deep vertical integration, producing batteries and chips in-house to keep costs low and expand production quickly. The results show that both models offer advantages depending on company goals and market conditions. This comparison helps investors and policymakers understand the trade-offs between technological leadership and cost efficiency in the EV industry, and highlights different paths companies can take to remain competitive.

Keywords: Business Model; Tesla and BYD; Supply Chain Integration; Core Technology Competition (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-874-5_74

Ordering information: This item can be ordered from
http://www.springer.com/9789464638745

DOI: 10.2991/978-94-6463-874-5_74

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().