Warren Buffett-Backed BYD Slashes EV Prices In Year-End Push Amid Intensifying Race With Tesla
Portfolio Pulse from Benzinga Neuro
BYD, backed by Warren Buffett, has announced temporary price cuts on several EV models to boost year-end sales and intensify competition with Tesla. The discounts, which are not permanent, range from RMB 3,000 to RMB 20,000 on models like the Qin, Han, Tang, and Song. BYD's CEO Wang Chuanfu is prepared for a price war over the next 3-5 years to gain market share. BYD's sales have surged by 77% over last year, with the aim to surpass Tesla's annual EV sales.
December 01, 2023 | 8:26 am
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Tesla may face increased competition from BYD's aggressive pricing strategy, which could impact Tesla's market share and sales growth, especially in the Chinese market where BYD is a strong player.
BYD's price cuts are likely to make its EVs more attractive to consumers, potentially affecting Tesla's sales. As BYD aims to surpass Tesla's sales by the end of the year, this aggressive pricing could lead to a short-term negative impact on Tesla's stock price due to concerns over market share and growth in the competitive EV market.
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