Tesla competitor BYD axes Mexico factory plans

Core Viewpoint - The world's largest electric vehicle maker, BYD, is halting plans to build a major factory in Mexico due to concerns over US trade policies, while still planning to expand in North or South America without a specific timeline [1] Group 1: Geopolitical and Trade Concerns - Geopolitical issues significantly impact the automotive industry, prompting companies to rethink their strategies in various countries [2] - President Trump's tariffs impose a 25% tariff on cars coming from Mexico to the US, affecting US and global automakers [3] Group 2: International Expansion and Challenges - BYD is opening a plant in Bahia, Brazil, marking its first factory outside Asia, but faced legal issues regarding worker conditions, leading to a reassessment of its international expansion strategy [4][9] - The company plans to slow down its expansion efforts and focus more on collaboration with local companies, acknowledging that this approach may take longer [10] Group 3: Market Performance - BYD is on track to sell over 5 million cars this year and has surpassed Tesla in EV sales in Europe for the first time in April [10] - The company's stock has increased by 38% this year, driven by strong battery technology, affordability, and global expansion [11]