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High fuel costs are accelerating a global shift toward cheaper Chinese hybrid and electric vehicles. Chery's JQ7 became the best-selling vehicle in Britain, while BYD has captured the vast majority of the Mexican electric vehicle market.
China is leveraging its strong negotiating position to demand access for its electric vehicle manufacturers to construct factories and sell cars in the United States. Krystal notes that importing brands like BYD would be economically devastating to the Detroit auto industry.
Ben Horowitz believes achieving BYD-level electric vehicle pricing in the U.S. necessitates rebuilding automated, AI-centric manufacturing capabilities, mirroring Tesla's Gigafactory model, to contend with subsidized Chinese production.
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