Wang Chuanfu, a Chinese electric vehicle millionaire, has recently overtaken Elon Musk

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