Wang Chuanfu, a Chinese electric vehicle millionaire, has recently overtaken Elon Musk
- 138
- Entrepreneur
- 19:46 11/08/2022
DNHN - Frustrated by the lack of vitality in government operations, millionaire Wang Chuanfu sought to acquire a faltering state-owned vehicle manufacturer 20 years ago. After two decades, his electric vehicle manufacturer BYD has surpassed billionaire Elon Musk's Tesla to become the world's largest battery-powered vehicle manufacturer (by sales).
The journey from scientist to billionaire
Mr Wang Chuanfu was born in Anhui province as the youngest child of a destitute rural family. Mr Wang was raised by his elder siblings after his parents died.
Mr Wang studied chemistry at Zhongnan University and earned a master's degree from the Beijing Institute of Nonferrous Metals Research while growing up. Following graduation, he was offered a position in a non-ferrous metal research facility in Beijing, first for research and subsequently for teaching. Before starting BYD in the 1990s, he worked as a researcher for the Chinese government.
Frustrated by the lack of vitality in public affairs, he relocated to Shenzhen, southern China, in the mid-1990s, just as the city was evolving from a quiet fishing hamlet into a worldwide industrial powerhouse. The city's companies now have the inexpensive workforce they need to compete with rivals in Japan and South Korea thanks to mass migration from rural areas.
This millionaire wanted to acquire a failing state-owned automobile firm and then replace the internal combustion engine with a battery to establish his electric car project 20 years ago. He experienced numerous challenges initially owing to a lack of finance and had to borrow money from his family to establish his nickel battery firm.
After two decades, his electric vehicle manufacturer BYD has surpassed billionaire Elon Musk's Tesla to become the world's largest battery-powered vehicle manufacturer (by sales). According to Forbes, despite the Covid-19 embargo, BYD stock rose 90% in July, allowing Mr Wang to make another $7 billion. Mr Wang is the 22nd richest billionaire in China, according to the Financial Times.
Wang's fortune rose to $27 billion in July before falling to $25 billion. Mr Wang became China's richest man in 2009 after billionaire investor Warren Buffett invested $5.1 billion in BYD.
Mr Wang's fortune increased to $23.5 billion last year when BYD's stock price quadrupled. He was China's 14th richest billionaire at the time.
BYD is competing with Tesla
BYD stands for "Build Your Dreams." Mr Wang's business has steadily taken over the electric vehicle sector after becoming the world's largest rechargeable mobile phone battery manufacturer.
BYD's success has put the Shenzhen-based business, which is still little known outside of China, on the front lines of the struggle for survival among automakers as more electric and autonomous vehicles enter the globe. The business sold over 641,000 automobiles in the first half of 2022. CNBC said that it sold 130,000 units last year. According to Fortune, BYD has an edge over American and Japanese manufacturers in that it can make cheaper automobiles with more robust batteries.
Warren Buffett, the billionaire investor, formerly owned a stake in BYD. Billionaire Warren Buffett purchased a 10% interest in BYD for $232 million in 2008. His investment has risen in value 33 times in 13 years as of July of this year.
BYD is vying with Tesla to become the world's largest electric vehicle manufacturer. Previously, in a 2011 interview with Bloomberg, Tesla CEO Elon Musk commented on BYD's electric vehicles: "Have you seen their vehicle? They don't create a nice product, in my opinion."
However, because of its capacity to diversify its supply chain and production sites, the Chinese manufacturer experiences fewer obstacles during the epidemic and even enjoys better profitability. Meanwhile, Mr Musk was forced to close the Shanghai production for two weeks due to the blockage. Furthermore, BYD can produce its processors and batteries. As a result, the firm does not experience the same supply and logistical challenges that other manufacturers have.
BYD surpassed Tesla 11 years later. BYD sold 641,350 vehicles in the first six months of the year, compared to around 564,740 for Tesla. BYD has also collaborated with Mercedes-Benz to create electric trucks beginning at $50,000. However, the company's primary concentration remains on buses, automobiles, electric bicycles, and rechargeable batteries.
Mr Wang noted gasoline has caused numerous environmental concerns when asked why he wanted to start an electric car firm. "In China, the future of electric cars is quite bright," he remarked.
When asked why he got into the electric car market, he answered it was all out of curiosity. "When we see something excellent, we wonder what generated it, and we begin to look for its deep roots," the billionaire remarked.
HH
Related news
- Vietnam’s steel imports are estimated to exceed US$4 billion by the end of the first quarter of 2024
- Acting President Vo Thi Anh Xuan meets a delegation of the Vietnam Young Entrepreneurs Association
- State-owned enterprises to play a leading role in the economy
- Ensuring power supply - a key factor for FDI enterprises to invest in Vietnam
- South Korea to approve projects supporting Vietnam’s agricultural development
- Thanh Hoa Business Association: Seminar and Business Networking in Trieu Son District
- Binh Thanh Business Association organised March’s “Business Start-up and Management” Coffee Talk
- Vietnamese businesses dominate market share in Japan
- Important seafood industry groups exported to Australia
- Prime Minister encourages Australian companies to make investments in fresh growth drivers in Vietnam
- Foreign E-commerce businesses pay over 2,000 billion VND in tax in the first two months of the year
- Hoa Binh Provincial People's Committee: Gathering in the spring of the Lunar New Year 2024 with enterprises, investors, and cooperatives
- Over 400 businesses to participate in Vietnam ETE & Enertec Expo 2024
- Long An’s Allure - a “Magnet” with Constantly Improving Infrastructure and a Transparent Investment Environment
- Unilever Vietnam and nearly Three Decades of Accompanying Vietnam’s Sustainable Development
- Chu Lai International Airport to become international air logistics service centre
- THACO to Recruit over 12,000 New Employees as It Expands into Agriculture
- Dong Thap Welcomes Delegations from Three Provinces of the Kingdom of Cambodia for a Visit and Tet Celebration
- What Obstacles Will the Vietnamese Textile Industry Face in 2024?
- ADB Ready to Support Vietnam in Accessing Loans and Promoting Sustainable Development
Đọc thêm Entrepreneur
CEO of startup 1Long: “Being different is one of the fundamentals of business"
With the success of raising 500,000 USD from major investment funds, 1Long is proving its strength in the field of financial management. Let’s explore an exciting conversation with Michael Do about the journey of building this fintech startup.
The entrepreneurial journey of a former Uber CEO
Sharing his journey into a completely new field, Mr Dung believes that all change comes with risk, and the important thing is to identify what you need to trade off and whether you are willing to accept those risks.
Tara Ha, the Vietnamese-American businesswoman who is loved in the US
From a famous TV announcer in the US, Tara Ha, a Vietnamese-American woman, changed her career path and founded a financial and insurance consulting company to bring the best value to the Vietnamese community in the US.
Renowned designer Quynh Paris, acclaimed in Europe and the U.S., assumes role of head judge for Miss Glam Business 2024
Quynh Paris is recognized as a trailblazer in the field of applied fashion and art. Her collections consistently utilize natural and recycled materials, conveying contemporary messages and promoting environmental protection.
Mr Vu Tien Thanh Appointed as Head Coach of LPBank Hoang Anh Gia Lai Football Club
LPBank Hoang Anh Gia Lai Football Club officially appoints Mr. Vu Tien Thanh as the head coach, replacing Coach Kiatisak Senamuang to lead LPBank Hoang Anh Gia Lai Football Club in the next phase of the V.League 2023/24.
Mr Nguyen Dang Quang is no longer listed as a USD billionaire
The reason for Mr Nguyen Dang Quang’s departure from the list may be due to the downward pressure on Masan Group’s MSN shares at the beginning of this year.
Entrepreneur Ho Le Quyen re-elected as President of Ca Mau Young Entrepreneurs Association for the third term
The Ca Mau Young Entrepreneurs Association recently successfully held the Third Congress of Delegates for the 2023-2028 term with the message "Pioneering - Innovation - Creating Value".
Labour Hero Thai Huong honoured as Global Sustainability Leader of the year
The world's most prestigious award ceremony for business, the Le Fonti Global Awards ceremony honoured entrepreneurs with a lavish celebration on December 14, 2023, in Dubai.
Tech leader Nguyen Thi Kieu Quyen assumes the role of ambassador for Women in Tech in Vietnam
Under the high patronage of the President of the French Republic, Emmanuel Macron, Women in Tech currently has over 200,000 members across 30 countries and 6 continents.
Businesswoman Phan Thi My Linh won the title of Miss Vietnam Business Talent 2023
Phan Thi My Linh (competitor code: 039), a stunning contestant from the province of Ben Tre, won the title of Miss Vietnam Business Talent 2023.