Fresh EU Tariffs Could Slow Down Tesla Chinese Rivals, But Warren Buffett-Backed BYD 'Can Profitably Export Even At A 35% Tariff,' Says Expert
Portfolio Pulse from Benzinga Neuro
The European Union has introduced new tariffs on Chinese electric vehicles, impacting companies like BYD, Nio, Li Auto, and XPeng. Despite the tariffs, BYD is expected to remain competitive due to its cost advantages. The tariffs could accelerate localization plans for Chinese EV makers in the EU and have broader implications for the global automotive industry.
June 13, 2024 | 9:31 am
News sentiment analysis
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NEGATIVE IMPACT
Li Auto is expected to face significant challenges due to the new EU tariffs on Chinese EVs, which could escalate to about 35%.
The new EU tariffs will likely pose significant challenges for Li Auto, potentially impacting its profitability and market share in Europe.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 70
NEGATIVE IMPACT
Nio is likely to face significant challenges due to the new EU tariffs on Chinese EVs, which could escalate to about 35%.
The new EU tariffs will likely pose significant challenges for Nio, potentially impacting its profitability and market share in Europe.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 70
NEGATIVE IMPACT
XPeng is expected to face significant challenges due to the new EU tariffs on Chinese EVs, which could escalate to about 35%.
The new EU tariffs will likely pose significant challenges for XPeng, potentially impacting its profitability and market share in Europe.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 70
NEUTRAL IMPACT
BYDDF shares closed 1.80% lower despite the news of new EU tariffs. The company's cost advantages are expected to help it remain competitive.
Despite the new tariffs, BYDDF shares closed lower. However, the company's cost advantages are expected to help it remain competitive in the long term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Tesla is not directly mentioned in the context of the new EU tariffs, but the broader impact on the EV market could have indirect effects.
While Tesla is not directly mentioned, the new EU tariffs on Chinese EVs could have indirect effects on the broader EV market, potentially impacting Tesla.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30
POSITIVE IMPACT
BYD is expected to remain competitive despite new EU tariffs due to its cost advantages. Shares surged nearly 9% in Hong Kong following the news.
BYD's cost advantages allow it to profitably export even with the new tariffs. This positive outlook led to a surge in its Hong Kong shares.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100