Published on 18 Apr 2023 on Zacks via Yahoo Finance
China EV Price War Reaches Fever Pitch: An Analysis
A full-blown electric vehicle (EV) price war has erupted in China. U.S. EV king Tesla TSLA has sparked an EV price war in China that has resulted in massive price cuts by various automakers in the world’s largest car market. It all started in October when Tesla cut the prices of its popular models in China. The discounts were further escalated in January that made locally-produced cars up to 14% less expensive than 2022. In some cases, the prices of cars in China were around 50% cheaper than in the United States and Europe.
To keep up with the stiff competition, intensified by Tesla’s steep price reductions, rivals were left with little option but to follow the EV behemoth’s footsteps. Not only China-based EV makers like NIO Inc. NIO, XPeng Inc. XPEV and BYD Co Ltd BYD followed suit, legacy automakers including Ford F, Volkswagen and others also joined the EV price war bandwagon.
BYDDY currently sports a Zacks Rank #1 (Strong Buy). TSLA and XPEV are #3 Ranked (Hold) each, while F and NIO carry a Zacks Rank #4 (Sell) currently.