Tesla-Like EV Makers Need To Be 'Absolutely Relentless' At Reducing Costs, Says Former Sales Chief — Hails This BYD Manufacturing Practice - Tesla (NASDAQ:TSLA)

Former Tesla Inc. (NASDAQ:TSLA) global sales chief Jon McNeill says that the EV giant learned a valuable technique from its Chinese rivals during his time with the company.

Tesla Is A ‘Learning Sponge,' Says Jon McNeill

In an interview with Business Insider on Thursday, McNeill, who also serves as a member of the General Motors Co (NYSE:GM) board, shared that the Elon Musk-led EV giant was like "a learning sponge," adding that the brand learned some lessons when taking apart a Chinese competitor's vehicle, though he did not specify a particular model or automaker that helped Tesla, the report said.

McNeill shared that Tesla learned how to reuse parts from the Chinese manufacturers, adding that the practice was evident in the Model 3 and Model Y, which share many of the same parts between them.

He also said that Chinese companies, particularly Tesla's rival BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF), cut down on a lot of costs by sharing parts.

"The Chinese engineers are really disciplined about reusing parts underneath the hood," McNeill said, adding that BYD vehicles, when torn down, have many of the same components like wiper motors across the range. McNeill hailed the move as "super smart" because parts like motors don't "change or add to the experience."

Relentless Cost Saving

McNeill said that BYD's practices come as cost-saving measures are crucial for new automakers to be able to scale, which is "really capital-intensive," McNeill shared, adding that newer EV makers need to be "absolutely relentless" at cost-saving measures.

Tesla's China Pivot, AI Chip-Building Ambitions

The comments come as Tesla is reportedly shifting away from Chinese components in its vehicles, as it has asked its suppliers to exclude China-made components as a part of the automaker's broader strategy to reduce reliance on China.

Meanwhile, the company also recently announced its push towards building in-house AI chips, which Musk said would help Tesla build more chips than all other chipmakers. Musk's claims were backed by Tesla's AI chief, Ashok Elluswamy.

BYD Sees 200% Surge In European Sales

Meanwhile, BYD recorded a 206.8% surge in new registrations for its vehicles in Europe, selling more than 17,000 units during October in the market. BYD’s YTD sales from January to October showcased an even higher jump at 285%, selling over 138,390 units.

Tesla scores well on the Momentum metric, while offering satisfactory Quality and Growth, but poor Value. Tesla also has a favourable price trend in the Medium and Long term. For more such insights, sign up for Benzinga Edge Stock Rankings today!

Price Action: TSLA surged 1.71% to $426.58 at market close, according to Benzinga Pro data.

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