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Wedbush Securities tech analyst Dan Ives returned from a trip to Asia this month with good news\u2014the brutal war for control over China\u2019s EV looked like it was subsiding as prices bottomed out.\u00a0<\/p>\n
\u201cThere is a sense from industry checks within the country and region that many of these price cuts are starting to subside into spring\/summer, which is good news for Tesla and the EV industry,\u201d he predicted two weeks ago.\u00a0<\/p>\n
But \u2018starting\u2019 may prove to be the operative word as Elon Musk\u2019s arch rival, Chinese EV maker BYD, just lowered the bar to purchase its flagship Seal EV sedan, a contender for 2024 World Car of the Year.<\/p>\n
According to a\u00a0report<\/a>\u00a0by motoring website CnEVPost on Monday, the\u00a0Warren Buffett-backed<\/a>\u00a0carmaker cut the asking price by 10,000 yuan to 179,800 yuan ($25,000), a reduction of 5%.\u00a0<\/p>\n BYD then went on to double that to 20,000 yuan for two of its higher trim Seals. Finally, the top-end version with dual motors for all-wheel drive now retails for 249,800 CNY, or 30,000 less than what was previously asked.<\/p>\n And now finally another look at the Top Three contenders for the 2024 World Car of the Year. All are EVs, but couldn\u2019t be more different from each other in most other ways. BYD Seal, Kia EV9, Volvo EX30. #WCOTY<\/a> #WCOTY20<\/a> \u2014 World Car Awards (@WorldCarAwards) March 22, 2024<\/a><\/p><\/blockquote>\n Positioned for more affluent customers, the Seal is one of China\u2019s best bets for\u00a0conquering western markets<\/a>. Alongside the Kia EV9 and Volvo EX30, it is one of only three contenders that could drive away with the top prize when the World Car of the Year jury announces their awards at the New York Auto Show on Wednesday.<\/p>\n For any western carmaker\u00a0trying to keep pace<\/a>\u00a0with China\u2019s rapidly evolving EV industry, the cut to BYD\u2019s prices only further raises the stakes in the world\u2019s largest car market. If you\u2019re Elon Musk, however, it could prove to be an even bigger threat.\u00a0<\/p>\n That\u2019s because the Chinese brand eclipsed Tesla as\u00a0industry leader<\/a>\u00a0in the fourth quarter on the back of models that do not pose any immediate threat to the entrepreneur. Every time a BYD Dolphin or Seagull is sold, it only poaches customers that would have likely cross-shopped other Chinese brands\u2014ditto for its plug-in hybrids sold under the \u2018DM-I\u2019 line.<\/p>\n BYD is celebrating a huge milestone as the world\u2019s first automaker to roll off its 7 millionth NEV, an all-new DENZA N7.<\/p>\n Stay tuned as BYD continues to lead the charge toward green mobility.#BYD<\/a> #BuildYourDreams<\/a> pic.twitter.com\/HDLOZJ0vol<\/a><\/p>\n \u2014 BYD Global (@BYDGlobal) March 25, 2024<\/a><\/p><\/blockquote>\n That\u2019s not the case with the Seal. The all-electric version of the BYD sedan positions itself as a direct rival to the Model 3, responsible for just over a quarter of Tesla\u2019s global sales.\u00a0<\/p>\n The Seal\u2019s price cut comes at a sensitive juncture for Tesla. Late last year, the M3 received a sportier look, refreshed interior and some improvements to its performance. This\u00a0extensive facelift<\/a>\u00a0to the nearly seven-year-old car, dubbed the \u201cHighland\u201d, was sorely needed to sustain volumes at a time when Tesla is\u00a0scraping the barrel<\/a>\u00a0for vehicle sales growth after years of expanding deliveries by 50% or more.\u00a0<\/p>\n Tesla doesn\u2019t break out sales of its cars by market, but the M3 Highland first launched in China, signaling it is likely the car\u2019s single largest market. If the price cuts to the Seal prove a hit with\u00a0well-heeled Chinese EV buyers<\/a>, Musk\u2019s could struggle mightily to grow Model 3 sales beyond the half a million vehicles delivered to customers last year.<\/p>\n<\/div>\n\n
\ud83d\udcf8 @sidpatankar<\/a> pic.twitter.com\/SqO8Dmk75O<\/a><\/p>\nPrice cut arrives at sensitive juncture for Tesla<\/h2>\n
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