Even as BYD has overtaken Tesla in global sales, direct comparisons between their electric vehicles have remained relatively uncommon. Tesla was long regarded as the innovator, while BYD was often cast as the imitator. But now, such comparisons are becoming unavoidable. 

Last year, more than 95 per cent of Tesla’s global deliveries came from the Model 3 and Model Y. These two models have driven the company’s growth for nearly a decade. Yet the market is changing. Demand growth is slowing, competitors are catching up and Tesla’s response has been to cut prices aggressively, in the hope that volume can offset margin.

The launch of the Model Y Standard, priced at $39,990 in the US, and €39,990 in Germany, is the clearest sign of that new strategy. The lower entry point for its most important model is a defensive move, with Tesla fighting to hold its ground against BYD in the same midsize electric SUV segment that once seemed unassailable for Elon Musk’s company.