At the headquarters of BYD Co. in Shenzhen, a wall crammed floor to ceiling with about a thousand framed patents showcases the more than 30,000 innovations that the electric-vehicle maker’s billionaire founder, Wang Chuanfu, and his team of engineers have devised. These patents, which include breakthroughs like the low-cost lithium-iron-phosphate battery used by rivals such as Ford, Tesla, and Toyota, are pivotal assets that have turned Wang’s company into the world’s biggest EV maker. After selling 3 million electric and hybrid vehicles in 2023 and logging $85 billion in revenue, BYD is on track to overtake Tesla Inc. this year. Now, Wang is further disrupting China’s EV industry with cars costing less than $10,000, fulfilling a goal once pursued by Elon Musk.
Wang Chuanfu’s success in the EV sector has drawn comparisons to Elon Musk. However, unlike Musk, whose ventures span from EVs to space travel and brain implants, Wang has remained focused on producing affordable transportation. The 58-year-old, who studied battery metal chemistry in college, began his career making cellphone batteries in 1995. He continually refined this technology for car batteries, attracting attention and investment from Berkshire Hathaway Inc. Chairman Warren Buffett. As BYD grew, Wang diversified into complementary businesses like battery storage, semiconductors, and solar, while always striving to keep prices low, aligning with BYD’s “Build Your Dreams” motto.
In addition to being an innovator, Wang is known for his management execution skills. He saw vertical integration as key to BYD’s strategy, enabling lower costs through control of the supply chain, thus giving the company a competitive edge. Charlie Munger, the late vice chairman of Berkshire Hathaway, praised Wang as a fanatical engineer who saved BYD from bankruptcy through relentless 70-hour workweeks. Munger believed Wang’s hands-on approach and deep understanding of manufacturing made him superior to Musk.
Bill Russo, of Shanghai-based consultants Automobility, compares Wang to Henry Ford. “Wang is to the 21st century EV industry what Henry Ford was to the 20th century automotive industry: Both entrepreneurs leveraged vertical integration and economies of scale to democratize mobility,” Russo says. This approach is evident as BYD continues to expand its market presence, recently rolling out its third electric vehicle in Japan despite challenging market conditions dominated by hybrids and domestic brands.
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