- BYD just fired another shot in China’s electric vehicle price war.
- The Tesla rival cut prices on 22 models last week, including its entry-level Seagull EV.
- Shares in Chinese EV makers tumbled on Monday as investors fretted over growing competition in the sector.
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Revisions by BYD include paring the price of its Seagull hatchback to 55,800 yuan ($7,780), a 20% reduction to a model that was already the carmaker’s cheapest and one that had garnered global attention for its sub-$10,000 price tag. The Seal dual-motor hybrid sedan saw the biggest price cut at 34%, or by 53,000 yuan to 102,800 yuan.
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BYD has 22 models, and Tesla has 5, including the Cybertruck which is vying with Edsel for “biggest automotive disaster in history”?
Reminiscent of what happened in the US industry when Ford kept dropping the price of the Model T. A few survived, most competitors went under.
Same thing that happened in other segments the Chinese targeted, like solar panels. Many comers, state support, then a free for all for survival and support ends.
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Re: Ford Model T
Yes, many high end competitors folded. But others like GM consolidated and learned to compete. Ford was forced to shut down and retool for the Model A.