Tesla Opens Second Chile Store As BYD Dominates South American EV Market

Tesla has opened its second retail location in Chile, expanding its South American presence nine months after entering the market, according to a post by Tesla Chile Sales Advisor Francisco Taladriz on October 26, 2025. The new store at Alto Las Condes shopping center in Santiago marks Tesla’s continued push into a region where Chinese automaker BYD has already captured significant market share.

The expansion comes as Tesla faces mounting competitive pressure from Chinese EV manufacturers across multiple global markets, from Europe to Asia. In South America, BYD’s head start and aggressive pricing strategy have positioned the Chinese giant as the dominant player in a rapidly growing but still nascent EV market.

New Store Location and Supercharger Network Plans

The Alto Las Condes store is located at Av. Pdte. Kennedy Lateral 9001 in the Las Condes district of Santiago, Chile’s capital and economic center. The upscale shopping center location mirrors Tesla’s first Chilean store at Parque Arauco, which opened in January 2024.

Beyond retail expansion, Tesla plans to deploy Superchargers every 200 km (124 miles) along Chile’s extensive coastline and highway network, according to Taladriz. This infrastructure strategy addresses a critical challenge in a country that stretches over 4,000 km (2,485 miles) from north to south, making it ideal for long-distance EV travel with proper charging coverage.

Tesla opened its first two Superchargers in Chile in October 2024 at Curauma and Quilicura, both near Santiago. Spanish-language sources indicate Tesla aims to complete the nationwide charging network within the next two years, with free charging for Tesla customers during an initial promotional period.

Chile’s Strategic Importance for Tesla

Chile represents Tesla’s first South American market, chosen for several strategic advantages. The country imposes no significant import tariffs on vehicles, unlike Brazil which maintains extensive trade barriers. Chile’s GDP per capita of $16,600 exceeds regional competitors like Brazil at $11,300, concentrating purchasing power around Santiago where approximately 7-10% of the country’s 13 million adults could potentially afford a Tesla.

The Chilean market sold approximately 300,000 vehicles in 2024, with EV market share tripling from 0.4% to 1.2% year-over-year. Tesla currently offers the Model 3 and Model Y in Chile, with the Model 3 capturing 15% of the country’s EV sales and the Model Y taking 10%, according to CleanTechnica data.

Chile’s geography makes it particularly well-suited for electric vehicles. The country’s narrow width and extreme length create natural highway corridors where strategic Supercharger placement can enable long-distance travel. The planned 200 km spacing between charging stations would cover the entire country with approximately 20 locations.

BYD’s Dominant Market Position

While Tesla celebrates its second showroom, BYD has established a commanding presence across South America. The Chinese automaker controls 19% of Chile’s EV market through aggressive pricing on models like the Dolphin Mini (also called Seagull), Yuan Plus, and Dolphin, which together account for 85% of BYD’s Chilean sales.

BYD’s South American footprint extends far beyond passenger vehicles. The company operates 2,606 electric buses across Latin America, representing 43.7% of the region’s e-bus fleet. In Chile specifically, BYD supplied 74% of the country’s 386 electric buses, primarily in Santiago’s public transportation system.

Latin American EV sales nearly tripled to 444,000 units in 2024 from 155,000 in 2023, with BYD leading this explosive growth. The Chinese manufacturer sold 40,000 units in Mexico alone during 2024 and captured over 47% of Ecuador’s EV market. BYD is also constructing a production facility in Brazil with capacity to manufacture 150,000 vehicles annually.

Competitive Landscape and Pricing Pressure

Tesla faces significant pricing challenges against Chinese competitors in Chile. The Model 3 starts at approximately $39.9 million Chilean pesos ($42,000 USD), while BYD’s entry-level models undercut this by thousands of dollars. BYD’s premium Seal sedan, marketed as a “Tesla killer,” has struggled in Chile due to pricing nearly $16,000 above the base Model 3 and low ground clearance unsuitable for the country’s speed bumps and curb parking.

The competitive dynamics in South America mirror broader global trends. Tesla’s U.S. market share dropped from 51% to 44% in Q1 2025 as GM and Ford gained ground. In Europe, Tesla sales plunged 36% in Spain while Chinese brands like BYD and MG saw triple-digit growth.

China’s dominance extends across Latin America. In 2024, Chinese automakers sold $8.56 billion worth of vehicles in the region, accounting for roughly 20% of the car market, up from just $2.2 billion in 2019. This expansion has reshaped perceptions about Chinese vehicle quality and technology throughout Latin America.

EVXL’s Take

Tesla’s second Chilean store signals continued commitment to South America, but the numbers tell a sobering story. While Tesla opened two retail locations over 21 months, BYD has been operating in Chile since 2016 and now moves more metal than anyone else in the region’s EV space. The Chinese competitor’s strategy of starting with electric buses created brand awareness and charging infrastructure that now supports its passenger vehicle expansion.

This pattern should sound familiar to EVXL readers. We’ve covered Tesla’s struggles against Chinese manufacturers in multiple markets, from Li Auto and XPeng crushing Tesla in China with 50% sales growth to BYD and MG capturing budget-conscious buyers across Europe. Tesla’s response has been aggressive international expansion, opening showrooms in India and Saudi Arabia this year, but expansion alone doesn’t solve the core competitive challenge.

The Supercharger network remains Tesla’s trump card. No competitor can match the reliability and coverage of Tesla’s charging infrastructure, and Chile’s unique geography plays to this strength. A 4,000 km country with concentrated urban wealth and clear highway corridors is almost perfectly designed for Tesla’s business model. If the company can execute on its promised 200 km Supercharger spacing within two years, it creates a moat that BYD can’t easily replicate.

But infrastructure alone won’t guarantee success. BYD pulled out of a $523 million lithium processing investment in Chile earlier this year due to falling lithium prices, showing even Chinese manufacturers face challenges in the region. However, BYD’s established presence with electric buses, lower-priced vehicles, and broader model lineup gives it significant advantages in a price-sensitive market.

The bigger question is whether South America represents a meaningful growth opportunity or a distraction from Tesla’s core challenges. The entire Chilean auto market sells 300,000 vehicles annually—the same number Brazil sells monthly. If Tesla can’t hold market share in the U.S., Europe, and China, capturing a few thousand annual sales in Chile won’t move the needle. But if South America becomes the beachhead for learning how to compete against Chinese manufacturers in emerging markets, this second showroom might prove more strategic than it appears.

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