Consulting firm Sino Auto Insights said the EV market was “a long way off” from being reshuffled. China’s EV market has been hit by Tesla’s sharp price cuts and the end of subsidies for EV buyers. But Tu Le, managing director of Sino Auto Insights, remains bullish on electric car giant Tesla and its Chinese peer BYD. “BYD is still able to lead far, not only in the Chinese market, but also in Israel and Thailand, where they are the number one brand in electric vehicles,” he said. There are still new players coming in, so a shuffle of the underdogs is coming, but the competition in the Chinese market is only really beginning… Sino Auto Insights Tu Le BYD is by far the largest domestic EV seller in China. “Their tentacles are expanding into other countries…they’re currently selling EVs in 52 countries. So BYD is a machine that’s going to keep going.” As for Tesla, “it’s rumored that this summer There will be an update to the Model 3 at a later date. So that could really build some momentum for Tesla again,” he said. In the first quarter, BYD reported that it sold 264,647 pure electric passenger vehicles in the first three months of the year, an increase of more than 80% year-on-year. Tesla said it delivered more than 422,000 vehicles globally during the same period. Tesla reported a 24% drop in net income from last year, from $3.32 billion to $2.51 billion. The drop in earnings was attributed to factors such as “underutilization of new factories” and higher raw material and logistics costs. “I think as China emerges from the Covid mess, we do see price wars kick in and some of the weaker players either dry up or get out of the market.” However, it could be a very different story for the EV giants . “I think it’s going to be another 24 to 36 months before we really see how this plays out among the top players,” he said. Other Highlights Tu acknowledged Tesla and BYD as the two biggest players in the EV market, but also saw hope in some upstarts. “I do see Xpeng Motors bringing a bright spot to Nio, and there will be new brands like G2 Auto,” he said. Tu said sales of emerging brands like “Xpengs and the Nios” this year may Close to 300,000 vehicles. “There are still new players coming in, so the weaker players are shuffling, but in terms of some of the higher-end brands, the competition in the Chinese market is just beginning.”