BYD Heading for Bankruptcy? Latest in Tesla Killers.

Let’s cut the polite finance talk. BYD is pulling the kind of accounting stunt that makes Enron look like amateurs. And yeah, it’s working—for now. They’re moving vehicles. Expanding. Showing up in headlines as “the one that might finally dethrone Tesla.”

But under the hood? It’s giving Evergrande.

BYD’s 280-Day Delay: This Is Not Normal

Here’s the situation. BYD is taking 280 days to pay its suppliers, according to Bloomberg. That’s nine months. Nearly a full-term pregnancy. For comparison, Tesla? 90 days. You sell Tesla a battery or a widget, you get paid in a quarter. You sell to BYD, and you might be refreshing your bank account every morning until next Christmas.

This isn’t just a delay—it’s a strategy. And a risky one.

Turning Liabilities Into Assets—Because Magic?

Instead of paying what they owe, BYD is securitizing those unpaid bills. Suppliers are handed “receivables”—basically IOUs dressed up in a suit—and told to go sell them as bonds. It's like saying, "We can't pay you yet, but here's a promise you can pawn off on someone else."

Sounds sophisticated. Looks terrifying.

Supply chain finance, as laid out in FIS Global’s 2023 study, can hide a lot of pain. It lets companies look healthier on paper by sweeping liabilities under a rug labeled “not my problem.”

Until it is.

Evergrande Did It First—And Look Where That Got Them

This isn’t new.

Evergrande pulled the same trick in China’s real estate market. They delayed payments, pushed debt off their books through similar games, and then exploded. $300 billion in liabilities. Suppliers unpaid. Projects abandoned. The Chinese government scrambling to contain the blast radius.

And now BYD is doing a remix—just with lithium and sheet metal instead of concrete and rebar.

Growth Is the Only Thing Holding This Together

To be clear, this whole strategy hinges on one thing: constant growth. As long as sales go up, the scheme can keep spinning. There’s fresh revenue to patch over the growing pile of obligations.

But what happens when sales flatten? Or drop?

That’s when the music stops. And a company that’s been leaning on delayed payments and creative financing suddenly has to settle up. All at once. With money they don’t have. That’s not a slowdown—that’s a collapse.

Tesla’s Not Playing That Game

Now look at Tesla.

Are they perfect? Of course not. But they’re not building their business on top of a Jenga tower of unpaid invoices. When Grace Tao-Lin posted about Tesla’s 90-day payment window on Weibo in November 2024, it wasn’t a flex—it was just… normal. Responsible. Boring, even.

And in this case? Boring wins.

Tesla’s supply chain isn’t getting stiffed. There’s no mystery meat accounting. They build. They pay. They iterate. And they’re not betting the farm on unsustainable growth or hiding liabilities in the shadows.

“Tesla Killer” Syndrome Strikes Again

Every few months, someone trots out a new Tesla killer. Lucid. Rivian. NIO. Now BYD. And every time, it turns out these companies either can’t scale, can’t make money, or—like in this case—are scaling by not paying their bills.

We’ve seen this movie. The ending doesn’t change.

If BYD wants to go global and stay relevant, they’re gonna have to clean this up. Because Wall Street might tolerate a little financial razzle-dazzle. But the moment trust breaks down—or growth falters—it’s game over.

The Real Tesla Advantage? Financial Discipline

While everyone else is playing short-term tricks to goose their numbers, Tesla’s quietly winning the long game. Vertical integration. Predictable payment cycles. Cash flow that isn’t propped up by Wall Street smoke and mirrors.

You don’t need 280 days to understand that’s the model worth betting on.

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References

1. Bloomberg – “China’s BYD Takes 280 Days to Pay Bills, Highlighting Risks for Suppliers.” Bloomberg News, 2023.https://www.bloomberg.com/news/articles/2023-11-16/byd-s-280-day-payment-cycle-signals-supply-chain-strain

2. FIS Global – “What is Supply Chain Finance?” FIS Global, 2023.https://www.fisglobal.com/en/insights/what-we-offer/supply-chain-finance

3. AP News – “China’s Evergrande ordered to liquidate by Hong Kong court.” Associated Press, January 2024.https://apnews.com/article/evergrande-liquidation-hong-kong-court-257693f68c8345e90330295c6e61e332

4. Reuters – “China Evergrande Group formally placed into liquidation.” Reuters, January 2024.https://www.reuters.com/world/china/china-evergrande-group-formally-placed-into-liquidation-2024-01-29

5. Wikipedia – “Evergrande Group.” Last modified 2025.https://en.wikipedia.org/wiki/Evergrande_Group

6. CnEV Post – “Tesla China has shortened supplier payment cycle to 90 days, exec says.” CnEV Post, November 2024.https://cnevpost.com/2024/11/29/tesla-china-shortened-supplier-payment-cycle-90-days/

7. Benzinga – “Tesla Improves Relations with Suppliers in China by Shortening Payment Cycle to 90 Days.” Benzinga, 2024.https://www.benzinga.com/news/24/11/tesla-payment-cycle-improvement

8. Caixin Global – “Tesla Shortens Payment Cycle for China Suppliers to 90 Days.” Caixin Global, 2024.https://www.caixinglobal.com/2024-11-29/tesla-shortens-payment-cycle-for-china-suppliers-to-90-days-102124443.html

9. Teslarati – “Tesla improves supplier relationships in China.” Teslarati, December 2024.https://www.teslarati.com/tesla-china-supplier-payment-cycle-update/

10. Financial Times – “China clamps down on long supplier payment cycles, BYD among firms to commit to 60-day terms.” FT, March 2024.https://www.ft.com/content/1a2e0e8a-8474-4e7b-a77c-75825bc257f2

11. Wall Street Journal – “China to Enforce New 60-Day Supplier Payment Rules.” WSJ, March 2024.https://www.wsj.com/articles/china-regulators-60-day-supplier-payment-deadline-byd-tsmc-63f873cd

12. Digitimes – “China sets 60-day supplier payment deadline for automakers.” Digitimes Asia, April 2024.https://www.digitimes.com/news/a20240419PR202.html