BYD and Xpeng initiate new price cut and heavy discount to arrest sales slump
$BYD COMPANY (01211.HK)$ $XPeng (XPEV.US)$ $Tesla (TSLA.US)$ $NIO Inc (NIO.US)$ The article reported that BYD priced the basic edition of its refreshed Yuan Plus SUV at 119,800 yuan (US$16,642), 11.8 per cent less than the current version, the world’s largest EV maker announced on Monday. Xpeng said on Sunday was extending a 20,000-yuan discount on its bestselling G6 SUV until the end of the month, after deliveries fell to a three-year low in February.
BYD’s sales in February slumped nearly 40 per cent month on month to 122,311 units, the lowest since May 2022. As a result, the carmaker cut prices of models under its Dolphin, Han, Tang, Song and Seal series to stay ahead of the competition. Xpeng’s deliveries in February slumped 44.9 per cent month on month to 4,545 units, the lowest since March 2021.
Comment: This is a new round of EV price cut when I reported BYD cut EV price last week. BYD's price cut will push smaller automakers like Nio and Xpeng (still making losses) nearer to collapse while hurting its profit margin. Tesla's market share will be affected too but the impact is less because it has delivery to markets outside China like the US and EU.
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$BYD COMPANY (01211.HK)$ $BYD Co. (BYDDF.US)$ $S&P 500 Index (.SPX.US)$ $Nasdaq Composite Index (.IXIC.US)$ $Tesla (TSLA.US)$ $VOLKSWAGEN A G (VWAGY.US)$ $NIO Inc (NIO.US)$ $Li Auto (LI.US)$ $XPeng (XPEV.US)$ $General Motors (GM.US)$ $Ford Motor (F.US)$ $Rivian Automotive (RIVN.US)$ $MERCEDES-BENZ GROUP AG (MBGAF.US)$ $TOYOTA MOTOR CORP (TOYOF.US)$ $GEELY AUTO (00175.HK)$ $Stellantis NV (STLA.US)$
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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ZnWC OP : $BYD COMPANY (01211.HK)$ and $XPENG-W (09868.HK)$ fell nearly 2% and 5% respectively today amid EV price cut and sales slump.