This keeps getting more interesting
Tesla has hard to selling out its production in Shanghai so it lowers prices. After cutting prices, it still has a hard time, so it tries to export more in Germany by cutting prices there. Now, it's thinking of selling the surplus production back to North America. I find it unlikely that they will be able to do so in America due to political pressure, but selling to Canada/Mexico should be no problem.
The writing is on the wall as BYD continues to take commanding position in this medium market segment. BYD currently is just making life hard for everyone. Model 3 is more expensive than Seal, but Seal is a better car. Once Sea Lion comes out, Model Y will be in trouble. Similarly for higher end models like NIO ET5 and BBA cars, future Denza SUV/Sedan models will likely chip away at their profitability too.
Remember this from a while back.
A year ago, BYD still had not a great reputation for car quality, but that is no longer a concern. The fact that they are exporting so many cars in Western countries is also a large boost for them domestically. So there is not a lot of breathing room left for everyone else.
Tesla has hard to selling out its production in Shanghai so it lowers prices. After cutting prices, it still has a hard time, so it tries to export more in Germany by cutting prices there. Now, it's thinking of selling the surplus production back to North America. I find it unlikely that they will be able to do so in America due to political pressure, but selling to Canada/Mexico should be no problem.
The writing is on the wall as BYD continues to take commanding position in this medium market segment. BYD currently is just making life hard for everyone. Model 3 is more expensive than Seal, but Seal is a better car. Once Sea Lion comes out, Model Y will be in trouble. Similarly for higher end models like NIO ET5 and BBA cars, future Denza SUV/Sedan models will likely chip away at their profitability too.
Remember this from a while back.
Since Tesla price cut, it's been the death of NEVs in the 100 to 250k RMB range. BYD sucks the air out of the entire market. That's why it was such an important thing For BYD to raise production so quickly ahead of everyone else. Once you become the default choice, competition will have to do so much better just to get a piece of pie. Maybe, Huawei fanboys will always be buying Huawei branded cars. But for other automakers like ChangAn, Geely, Great Wall, XPeng, Li Auto and such, having a dominant player in the market is a really bad thing for them.
A year ago, BYD still had not a great reputation for car quality, but that is no longer a concern. The fact that they are exporting so many cars in Western countries is also a large boost for them domestically. So there is not a lot of breathing room left for everyone else.
