BYD’s $18 bn rout shows fallout of price war among EV makers in China
A price war among electric vehicle makers in China is taking a toll on even the most resilient players, as evidenced by BYD Co.’s staggering $18 billion drop in the past month.
The US-listed shares of the manufacturer that’s backed by Warren Buffett have declined 14% since Feb. 1, underperforming rival Tesla Inc. which advanced 9% during the period. In comparison, a gauge of global EV makers fell 9%.
Traders are growing wary about BYD’s prospects after the electric vehicle maker’s dealers slashed prices of some models to boost sales. The change in sentiment underscores the wave of caution that’s sweeping the industry following moves by Nio Inc. and XPeng Inc. to follow Tesla’s lead in lowering prices as demand slows.
