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BYD, one of China's leading EV manufacturers, boasts an impressive array of vehicle models. However, this multifaceted approach has created challenges. While the company's extensive lineup may seem advantageous, it often leads to confusion and complexity. The sheer number of models—running into almost twenty—makes it difficult for BYD to streamline operations and achieve the economies of scale that competitors like Tesla enjoy with only two main models: the Model Y and Model 3.
The speaker highlights how Tesla manages to generate similar revenues with significantly fewer models, each priced higher than BYD's offerings. This efficiency raises questions about BYD's long-term business strategy and its ability to maintain profit margins in a highly competitive market.