Electric vehicle sales are booming in South America – without Tesla

Original Article ↗ Hacker News Discussion ↗

Incumbent Automakers & Innovator’s Dilemma

  • Many argue legacy carmakers (VW, GM, Ford, Japanese brands) saw EVs coming but were structurally unable or unwilling to pivot: public-market pressure, fat ICE margins, and internal culture made a true restart too costly or risky.
  • GM is cited as having been well-positioned decades ago but culturally hostile to EVs.
  • Others push back on the idea that all incumbents are “left behind”: VW and Renault are noted as strong in European EV sales; VW is said to be “all-in” with no new ICE platforms despite financial headwinds from tariffs and Porsche strategy.
  • Japan is criticized for chasing hydrogen and slowing early Nissan EV momentum; Toyota is seen as still leaning on ICE/hybrids in many markets.

Chinese EVs, BYD, and South America

  • Multiple first-hand reports from Brazil and Colombia describe BYD as ubiquitous (especially taxis/Ubers), with Tesla almost absent so far.
  • BYD’s local manufacturing in Brazil, extensive showroom network, and ~$20–25k pricing are highlighted as key advantages.
  • Commenters note Chinese makers can price higher abroad than in China due to less intense competition, while still undercutting Western brands.
  • Some mention potential Chinese corruption/bribery abroad, but others note Western automakers have long done similar things in the region.

Tesla’s Role and Perceived Weaknesses

  • Several see Tesla as having stalled after failing to deliver a truly affordable sub-$30k model, leaving the mass market to Chinese brands.
  • Claims that Tesla has “no moat”: batteries (BYD ahead), self-driving (Waymo / Mobileye-type tech seen as at least comparable), and luxury (traditional brands) all cited.
  • Design stagnation and CEO politics are seen as eroding appeal, especially outside the US. Others counter that Tesla remains profitable and widely sold, and predictions of its demise have been premature.
  • In Colombia, Teslas are reportedly entering at prices competitive with BYD, possibly via subsidized or surplus inventory.

Economics, Use Cases, and Vehicle Form Factors

  • EVs are praised for daily use and moderate road trips; long-distance towing and sparse charging corridors (US, rural routes) remain pain points.
  • Debate over small EVs vs large SUVs/trucks: some blame marketing and US culture for oversized vehicles; others argue consumers rationally prefer space, comfort, and perceived safety.
  • Micro-EVs, cargo bikes, and tiny city cars are proposed as a logical endgame; pushback stresses collision safety with heavy vehicles and inadequate bike/EV infrastructure.

Geopolitics, Regulation, and Market Strategy

  • Western overregulation is blamed by some; others respond that China is also heavily regulated and that labor cost differences are relatively minor.
  • US tariffs and security concerns are seen as keeping Chinese EVs out of the US while leaving China free to dominate South America and other regions.
  • One view: US/EU automakers are rationally ignoring South America as a small, low-margin market, focusing instead on their protected home markets—even if that cedes long-term global influence to China.